|
(All amounts expressed in U.S. dollars unless
otherwise noted)
Stock Symbol:
AEM (NYSE and TSX)
TORONTO, Feb. 11, 2015 /PRNewswire/ -
Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM)
("Agnico Eagle" or the "Company") today reported a quarterly net
loss
of $21.3 million, or a net
loss
of $0.10 per share for the fourth quarter of 2014. This
result includes a non-cash foreign currency translation loss on
deferred tax liabilities of $20.3 million ($0.10 per share),
various mark-to-market adjustment losses of $5.0 million ($0.02
per share), unrealized losses on financial instruments of $7.7
million ($0.04 per share), non-cash foreign currency translation
losses of $7.0 million ($0.03 per share), non-cash stock option
expense of $3.5 million ($0.02 per share) and non-recurring gains
of $5.6 million ($0.03). Excluding these items would result in
adjusted net income of $16.6 million ($0.08 per share) for the
fourth quarter of 2014. In the fourth quarter of 2013, the
Company reported a net
loss
of $780.3 million or a net
loss
of $4.49 per share, which included a $1.0 billion impairment
loss.
Fourth quarter 2014 cash provided by operating activities was
$164.0 million ($152.2 million before changes in non-cash
components of working capital), this compares to cash provided by
operating activities of $140.8 million in the fourth quarter of
2013 ($135.8 million before changes in non-cash components of
working capital). The slight increase in cash flow before
changes in working capital during the current period was largely
due to higher production which more than offset lower realized
gold and silver prices (down 10% and 23% respectively, period
over period).
"Our operations continue to perform well, which allowed us to
exceed both our production and cost guidance for the third year
in a row. With projected year-over-year production growth
of 12%, lower fuel costs and weaker local currencies anticipated
in Canada, Mexico and Finland, we expect to have another strong
year in 2015", said Sean Boyd, President and Chief Executive
Officer. "It should also be an exciting year on the
exploration front, with drilling activities underway at most of
our mines, and significant programs planned at our Amaruq project
in Nunavut and El Barqueno project in Mexico. Given the
strong potential to expand the initial 1.5 million ounce resource
at Amaruq, and the recent positive permitting news at Meliadine,
we expect to unlock additional value from our Nunavut platform in
2015", added Mr. Boyd.
Fourth quarter, full year 2014 and recent highlights
include:
-
Record annual gold production
- Payable gold production
1
in 2014 was 1,429,288 ounces at total cash costs
2
per ounce on a by-product basis of $637, compared to guidance
of 1,400,000 ounces at total cash costs per ounce on a
by-product basis of $663. All-in sustaining costs
3
("AISC") for 2014 was $954 per ounce on a by-product basis,
which is below the previous 2014 guidance of $990 per ounce on
a by-product basis.
-
Record fourth quarter production
- Payable production in Q4 2014 was 387,538 ounces of gold at
total cash costs per ounce on a by-product basis of $662
-
2015 guidance maintained
- Production for 2015 is expected to be approximately 1.6
million ounces of gold with total cash costs on a by-product
basis of $610 to $630 per ounce. AISC are forecast to be
approximately $880 to $900 per ounce
-
Year-over-year increase in reserves and resources
- With the acquisition of Osisko Mining Corporation, reserves
at year end 2014 were 20.0 million ounces compared to 16.9
million ounces at year end 2013. Measured and indicated
resources and inferred resources also increased by
approximately 56% and 33%, respectively, over the 2013 period
-
Continued focus on reserve quality and improved grades
- Increased gold reserve grades at LaRonde (5.20 g/t versus
5.00 g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos
(3.01 g/t versus 2.84 g/t)
-
Increased reserves, resources and positive permitting
progress in Nunavut
- Initial inferred resource of 1.5 million ounces (6.6 million
tonnes grading 7.07 g/t gold) reported at Amaruq project.
Meliadine reserves increased by approximately 500,000 ounces to
3.3 million ounces (at a grade of 7.44 g/t gold), and the
Project Certificate setting out the terms on which the project
can proceed is expected within the next two months
-
Proceeds from sale of Probe Mines shares used to reduce
debt
- In Q1 2015, $30 million was repaid on the credit line.
-
A quarterly dividend of $0.08 per share declared
______________________________ |
1
Payable production of a mineral means the quantity of mineral
produced during a period contained in products that are sold
by the Company whether such products are shipped during the
period or held as inventory at the end of the period. |
2
Total cash costs per ounce is a Non-GAAP measure. For a
reconciliation to production costs, see "Reconciliation of
Non-GAAP Financial Performance Measures - Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold
Produced by Mine" below. Total cash costs per ounce of
gold produced is presented on both a by-product basis
(deducting by-product metal revenues from production costs)
and co-product basis (before by-product metal revenues).
Total cash costs per ounce of gold produced on a by-product
basis is calculated by adjusting production costs as recorded
in the consolidated statements of income (loss) for
by-product revenues, unsold concentrate inventory production
costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of
gold produced. Total cash costs per ounce of gold produced on
a co-product basis is calculated in the same manner as total
cash costs per ounce of gold produced on a by-product basis
except that no adjustment for by-product metal revenues is
made. See "Note Regarding Certain Measures of Performance".
For information about the Company's total cash costs per
ounce on a co-product basis please see "Reconciliation of
Non-GAAP Performance Measures" |
3
All-in-sustaining costs is a Non-GAAP measure and is used to
show the full cost of gold production from current
operations. For a reconciliation to production costs, see
"Reconciliation of Non-GAAP Financial Performance Measures -
Reconciliation of Production Costs to All-In Sustaining
costs" below. The Company calculates all-in sustaining costs
per ounce of gold produced as the aggregate of total cash
costs on a by-product basis, sustaining capital expenditures
(including capitalized exploration), general and
administrative expenses (including stock option expense) and
reclamation expenses divided by the amount of gold
produced. The Company's methodology for calculating
all-in sustaining costs may not be similar to the methodology
used by other producers that disclose all-in sustaining
costs. See "Note Regarding Certain Measures of
Performance". The Company may change the methodology it
uses to calculate all-in sustaining costs in the future,
including in response to the adoption of formal industry
guidance regarding this measure by the World Gold
Council. |
New Three Year Guidance Plan - Stable Production
and Cost Profile
Highlights from the new production and cost guidance for 2015
to 2017 include:
- In 2015, payable gold production is expected to be
approximately 1,600,000 ounces (a 12% increase from 2014
levels), while total cash costs per ounce on a by-product basis
are expected to be $610 to $630. Previous guidance for
2015 (from the February 2014 forecast) was 1,250,000 ounces at
a total cash cost on a by-product basis of less than $678 per
ounce
- Consolidated AISC for 2015 are expected to be approximately
$880 to 900 per ounce. In 2016 and 2017, the goal is to
further reduce the AISC below the forecast for 2015
- The estimated production level in 2017 is currently
forecast to be approximately 1.5 million ounces. However,
studies are underway at the following projects and may further
enhance the Company's production profile:
-
- Expansion of the Vault Deposit at Meadowbank
- Development of the Deep Zone at Goldex
- Production from Akasaba West at Goldex
- Rimpi Zone Development at Kittila
- Development of the Kuotko satellite deposit at
Kittila
- The Amaruq and Meliadine projects in Nunavut have the
potential to add to the Company's production profile in 2019
and beyond
Fourth Quarter and Full Year 2014 Financial and
Production Highlights
For the full year 2014, the Company recorded net income of
$83.0 million, or $0.43 per share. In 2013, Agnico Eagle
recorded a net
loss
of $686.7 million, or a net
loss
of $3.97 per share (a $1.0 billion impairment loss on mining
assets and goodwill was recorded in 2013 as a result of the sharp
decline in the market price of gold). Compared with the
prior year, 2014 earnings were positively affected by higher gold
production, favourable foreign exchange rate movements, the
acquisition of the Canadian Malartic mine, the ramp up of the
Goldex Mine and the start-up of the new La India mine.
For 2014, cash provided by operating activities was $668.3
million ($628.6 million before changes in non-cash components of
working capital). This represents an increase over
2013, when cash provided by operating activities totaled $481.0
million ($559.3 million before changes in non-cash components of
working capital). The increase was primarily due to
significantly higher gold production in 2014 resulting from the
acquisition of the Canadian Malartic mine.
In the fourth quarter of 2014, strong operational performance
continued at the Company's mines, which led to record quarterly
and annual gold production.
Payable gold production in the fourth quarter of 2014 was a
record 387,538 ounces compared to 322,443 ounces in the fourth
quarter of 2013. A detailed description of the production
and cost performance of each mine is set out below.
Total cash costs per ounce on a by-product basis for the
fourth quarter of 2014 were $662 versus $591 per ounce for the
fourth quarter 2013. The increase in total cash costs per
ounce on a by-product basis in the fourth quarter of 2014 is
mainly due to lower production levels at the Meadowbank mine
(record quarterly gold production was realized in the fourth
quarter of 2013), the inclusion of Canadian Malartic production
(at slightly higher costs), lower mill recoveries at Kittila and
lower by-product metals production and revenue.
For the fourth straight year, Agnico Eagle has reported record
annual gold production. The Company's payable gold production for
the full year 2014 was 1,429,288 ounces at total cash costs per
ounce on a by-product basis of $637. This compares to the
full year 2013 level of 1,099,335 ounces at total cash costs per
ounce on a by-product basis of $648. The improvement in
gold production in 2014 was a result of strong operating results
from all of the mines, particularly LaRonde and Meadowbank, the
ramp up of the Goldex and La India mines and the acquisition of
the Canadian Malartic mine. The decrease in total cash
costs per ounce on a by-product basis in 2014 was primarily due
to strong cost control initiatives at all of the mines, the
positive impact of foreign exchange and higher gold production
for 2014.
AISC for 2014 was $954 per ounce on a by-product basis, which
is below the previous 2014 guidance of $990 per ounce on a
by-product basis. The lower AISC is primarily due to lower than
forecast total cash costs per ounce on a by-product basis in
2014.
Quarterly Dividend Declared
Agnico Eagle's Board of Directors has declared a quarterly
cash dividend of $0.08 per common share, payable on March 16,
2015 to shareholders of record as of March 2, 2015. Agnico
Eagle has now declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the Remainder
of 2015
Record Date |
Payment Date |
March 2* |
March 16* |
June 1 |
June 15 |
September 1 |
September 15 |
December 1 |
December 15 |
*Declared
Dividend Reinvestment Plan
Please follow the link below for information on the Company's
dividend reinvestment program.
Dividend Reinvestment Plan
Conversion to International Financial Reporting
Standards
The Company adopted International Financial Reporting
Standards ("IFRS") as of July 1, 2014 to enhance the
comparability of its financial statements to the Company's peers
within the mining industry. Prior to this conversion
financial reporting was under US GAAP. Financial results
herein, including those for prior periods, have been calculated
in accordance with IFRS.
Additional disclosure regarding the IFRS conversion will be
included in the Company's Management's Discussion and Analysis
expected to be filed in late March 2015 in respect of the year
ended December 31, 2014.
Conference Call Tomorrow
The Company's senior management will host a
conference call on Thursday, February 12,
2015
at
11:00 AM (E.S.T.)
to discuss financial and operating results.
Via Webcast:
A live audio webcast of the meeting will be available on the
Company's website
www.agnicoeagle.com
.
Via Telephone:
For those preferring to listen by telephone, please dial
416-260-0113 or Toll-free 1-800-524-8950. To ensure your
participation, please call approximately five minutes prior to
the scheduled start of the call.
Replay Archive:
Please dial 1-647-436-0148 or Toll-free 1-888-203-1112, access
code 8252919. The conference call replay will expire on March 15,
2015 at 2:00 PM (E.S.T.). The webcast along with
presentation slides will be archived for 180 days on
www.agnicoeagle.com
.
Liquidity - Existing Cash and Credit Facilities
Provide Flexibility; Operations Expected to Generate Net Free
Cash Flow
Cash and cash equivalents and short term investments increased
to $182.2 million at December 31, 2014, from the September 30,
2014 balance of $165.6 million.
Capital expenditures in the fourth quarter of 2014 were $133.4
million including $26.0 million at Kittila, $23.4 million at
LaRonde, $17.7 million at Pinos Altos, $17.4 million at Canadian
Malartic, $16.2 million at Meliadine, $12.2 million at
Meadowbank, $10.6 million at Goldex, $4.2 million at Lapa, $2.9
million at Creston Mascota, $2.6 million at La India, and $0.2
million on other Canadian projects. For the full year 2014,
capital expenditures totaled $475.4 million, which was below
expected levels of $499 million announced in the third quarter
news release on October 29, 2014. This decrease in capital
spending is a reflection of capital and cost reduction
initiatives that have been ongoing through the second half of
2014.
As of December 31, 2014, the Company had drawn down $500
million on its credit lines. This results in available
lines of approximately $700 million.
On January 21, 2015, Agnico Eagle entered into an agreement to
sell a portion of its equity holdings in Probe Mines Limited to
Goldcorp Inc. Proceeds from this sale were used to make a
$30 million repayment on the credit lines on February 9,
2015.
Three Year Guidance Plan Outlines a Stable
Production and Cost Profile
The Company is announcing its production and cost guidance for
the three-year period of 2015 through 2017. Anticipated
production in 2015 is expected to increase by approximately 12%
from 2014 levels.
In 2015, payable gold production is expected to be
approximately 1,600,000 ounces. Total cash costs per ounce
on a by-product basis in 2015 are expected to be in the range of
$610 to $630. Cash costs are expected to be lower in the
second half of 2015 as a result of slightly higher
production. Previous guidance for 2015 (from the February
2014 forecast), which did not include the Canadian Malartic mine,
was 1,250,000 ounces at a total cash cost on a by-product basis
of approximately $678 per ounce.
2015 Commodity and currency price
assumptions
|
|
|
|
|
|
|
Approximate impact on total cash costs per ounce |
Silver ($/oz) |
18 |
|
|
|
|
|
|
$1 / oz change in silver price |
$2 |
Copper ($/mt) |
6,614 |
|
|
|
|
|
|
10% change in copper price |
n.a. |
Zinc ($/mt) |
2,000 |
|
|
|
|
|
|
10% change in zinc price |
n.a. |
Diesel (C$/ltr)
US$/C$ |
0.95
1.20 |
|
|
|
|
|
|
10% change in diesel price
1.0% change in US$/C$ |
$5
$5 |
EURO$/US$ |
1.18 |
|
|
|
|
|
|
1.0% change in Euro$/US$ |
$1 |
US$/MXP |
12.75 |
|
|
|
|
|
|
1,000 bps peso change in US$/MXP |
$1 |
LaRonde, Kittila, La India and Canadian Malartic
are Key Production Growth Drivers Over the Next Three Years
At LaRonde, commissioning of the cooling plant in 2014 had a
positive impact on operating flexibility and production at the
mine. With ongoing maturity of the mining fronts in the
deeper portions of the mine, and a gradual increase in the grade
towards the reserve grade of 5.2 g/t gold, production levels are
expected to steadily increase through 2017 and beyond.
With the completion of the mill expansion in 2014, production
at Kittila is expected to increase significantly. A priority
focus at Kittila will be on developing the Rimpi zone through a
ramp system to provide additional feed to the mill and enhance
Kittila's production profile. Agnico Eagle is also
evaluating the nearby Kuotko deposit (approximately 15 kilometers
to the north) as potential open pit satellite feed for the
Kittila mill.
In 2014, La India completed its ramp-up to full design
capacity and is expected to maintain production at an annual rate
of approximately 90,000 ounces over the next three years.
Initial studies are underway to evaluate the potential to expand
future production at La India
By the second half of 2015, mill throughput at Canadian
Malartic is expected to reach its design capacity of 55,000 tpd
(partly contingent upon updating the existing operating permits),
which should result in higher production levels. Efforts
are also underway to optimize the life-of-mine plan and further
improve productivity and reduce costs.
Estimated Payable Gold
Production
|
2014 Actual |
|
|
|
2015
Forecast
|
|
|
|
2016
Forecast
|
|
|
|
2017
Forecast
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern
Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde |
204,652 |
|
|
|
245,000 |
|
|
|
300,000 |
|
|
|
330,000 |
Canadian Malartic (50%)
|
143,008
|
|
|
|
280,000
|
|
|
|
290,000
|
|
|
|
290,000
|
Lapa |
92,622 |
|
|
|
75,000 |
|
|
|
50,000 |
|
|
|
0 |
Goldex |
100,433 |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
90,000 |
Kittila |
141,742 |
|
|
|
185,000 |
|
|
|
185,000 |
|
|
|
190,000 |
Meadowbank |
452,877 |
|
|
|
400,000 |
|
|
|
365,000 |
|
|
|
290,000 |
|
1,135,334 |
|
|
|
1,285,000 |
|
|
|
1,290,000 |
|
|
|
1,190,000 |
Southern
Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos |
171,019 |
|
|
|
175,000 |
|
|
|
175,000 |
|
|
|
175,000 |
Creston Mascota |
47,842 |
|
|
|
50,000 |
|
|
|
45,000 |
|
|
|
40,000 |
La India |
75,093 |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
95,000 |
|
293,954 |
|
|
|
315,000 |
|
|
|
310,000 |
|
|
|
310,000 |
Total Gold
Production |
1,429,288 |
|
|
|
1,600,000 |
|
|
|
1,600,000 |
|
|
|
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash Costs Per Ounce |
|
2014 Actual |
|
2015 Forecast
|
Northern Business |
|
|
|
|
LaRonde |
|
$668 |
|
$576 |
Canadian Malartic
Lapa |
|
701
667 |
|
609
769 |
Goldex |
|
638 |
|
618 |
Kittila |
|
845 |
|
711 |
Meadowbank |
|
599 |
|
656 |
|
|
664 |
|
642 |
Southern Business |
|
|
|
|
Pinos Altos |
|
533 |
|
526 |
Creston Mascota |
|
578 |
|
559 |
La India |
|
487 |
|
491 |
|
|
529 |
|
521 |
Total |
|
$637 |
|
$618 |
At current foreign exchange rates, total cash costs per ounce
on a by-product basis for 2016 and 2017 are expected to be
similar to the 2015 forecast.
Consolidated all-in sustaining costs for 2015 are expected to
be approximately $880 to $900 per ounce. In 2016 and 2017,
the goal is to further reduce the all-in sustaining cost below
the level forecast for 2015.
Improved Three Year Gold Production Forecast
Since the prior three-year production guidance of February 12,
2014 ("Previous Guidance"), there have been a number of key
operating developments, resulting in changes to the overall
three-year production profile. Descriptions of the major
factors that contributed to these changes are detailed below.
Northern Business
LaRonde Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
215,000 |
245,000 |
285,000 |
n.a. |
Current Guidance (oz) |
204,652 (actual) |
245,000 |
300,000 |
330,000 |
LaRonde
2015
Forecast
|
Ore
Milled
('000
tonnes) |
Gold (g/t),
Mill
Recovery |
Silver (g/t),
Mill
Recovery |
Zinc (%),
Mill
Recovery |
Copper (%),
Mill
Recovery |
Minesite Cost
Per
Tonne
4 |
|
2,245 |
3.65,
93.9% |
25.2,
76.9% |
0.51, 66.8% |
0.3, 79.7% |
C$102 |
At LaRonde, the new cooling and ventilation infrastructure
that was commissioned in early 2014 has helped to enhance the
productivity in the deeper portions of the mine. Three
mining horizons are now operational below level 215, which
provides access to higher grade reserves. A new coarse ore
conveyor system that is scheduled to be commissioned in late 2015
should further enhance the flexibility in these areas. The
increased production forecasts through 2017 largely reflect an
increase in grade closer to that of the average reserves
Canadian Malartic
Forecast
(50% basis)
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
135,000 |
n.a. |
n.a. |
n.a. |
Current Guidance (oz) |
143,008 (actual) |
280,000 |
290,000 |
290,000 |
Canadian Malartic
2015 Forecast
|
Ore Milled
('000 tonnes) |
Gold (g/t) |
Mill
Recovery |
Minesite Cost
Per Tonne |
Strip ratio |
|
9,700 |
1.01 |
89% |
C$20* |
2.1:1.0 |
*does not include the 5% NSR
_____________________________ |
4
Minesite costs per tonne is a non-GAAP measure. For a
reconciliation of this measure to production costs as
reported in the financial statements, see "Reconciliation of
Non-GAAP Financial Performance Measures - Reconciliation of
Production Costs to Minesite Costs per Tonne by Mine" below.
See also "Note Regarding Certain Measures of
Performance". |
At Canadian Malartic (in which Agnico Eagle has 50%
ownership), the current crushing circuit has a nameplate capacity
of 55,000 tpd. Throughput levels are forecast to be approximately
52,500 tpd in the first half of 2015, increasing to approximately
55,000 tpd in the second half of 2015. Production at
Canadian Malartic is forecast to be approximately 280,000 ounces
of gold in 2015 to Agnico Eagle's account. The potential
second half increase in throughput in 2015 is partly contingent
upon updating the existing operating permits. Forecasts for
2016 and 2017 assume a daily throughput rate of approximately
55,000 tpd.
Lapa Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
80,000 |
75,000 |
45,000 |
n.a. |
Current Guidance (oz) |
92,622 (actual) |
75,000 |
50,000 |
n.a. |
Lapa 2015
Forecast
|
Ore Milled
('000
tonnes) |
Gold (g/t) |
Mill Recovery |
Minesite Cost
Per Tonne |
|
584 |
5.17 |
77.5% |
C$118 |
At Lapa, 2015 and 2016 are the last two years of full
production based on the current life of mine plan.
Production in these two years is expected to progressively
decline due to lower tonnage and stope availability. The
current plan considers that the Lapa mine will only operate for a
portion of 2016. Additional exploration results from the
Zulapa Z7 and Z8 zones could potentially extend the mine life
beyond 2016.
Goldex
Forecast
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
80,000 |
100,000 |
90,000 |
n.a |
Current Guidance (oz) |
100,433 (actual) |
100,000 |
100,000 |
90,000 |
Goldex 2015
Forecast
|
Ore Milled
('000 tonnes) |
Gold (g/t) |
Mill Recovery |
Minesite Cost
Per Tonne |
|
2,190 |
1.55 |
92.5% |
C$34 |
The Goldex mine successfully started operations at the M and E
zones in the fourth quarter of 2013. Production in 2014 was
ahead of guidance due to a faster than expected ramp up in mining
rates. Existing reserves and exploitation of the M3 and M4
zones are expected to keep production levels and costs relatively
constant through 2017. Exploration and development has been
accelerated on the Deep Zone with the goal of outlining a
mineable reserve and completion of a technical study by late 2015
or early 2016. Development of the Deep Zone and the nearby
Akasaba West deposit have the potential to extend the mine's life
and/or production rate well beyond 2017.
Kittila
Forecast
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
150,000 |
160,000 |
170,000 |
n.a. |
Current Guidance (oz) |
141,742 (actual) |
185,000 |
185,000 |
190,000 |
Kittila 2015
Forecast
|
Ore Milled
('000 tonnes) |
Gold (g/t), |
Mill Recovery |
Minesite Cost
Per Tonne |
|
1,487 |
4.5 |
86.0% |
¬72 |
Expansion of the Kittila mill was essentially completed at the
end of the third quarter of 2014, approximately six months ahead
of schedule. The expansion provided upgrades to both the
grinding and flotation circuits and the oxidation and cyanidation
circuits. During the fourth quarter of 2014, activities focused
on ramping up throughput to the 4,000 tpd nameplate capacity
(early indications have shown that the plant can potentially
exceed this capacity). Production in 2014 fell short of
expected guidance due to the advancement of a 2015 planned mill
shutdown (related to the expansion) in September 2014, the
inability to access the remaining high-grade stopes in the
high-grade Suuri crown pillar, and fluctuations in mill
productivity during the mill ramp up in the fourth quarter.
In order to utilize this increased capacity, the Company is
looking at a combination of increased mine throughput and the
processing of surface stockpiles. As part of the program to
increase mine throughput, a priority focus will be on developing
the Rimpi zone through a ramp system to provide sufficient future
feed to the mill and enhance Kittila's production profile.
Meadowbank
Forecast
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
430,000 |
375,000 |
385,000 |
n.a. |
Current Guidance (oz) |
452,877 (actual) |
400,000 |
365,000 |
290,000 |
Meadowbank 2015
Forecast
|
Ore Milled
('000 tonnes) |
Gold (g/t), |
Mill Recovery |
Minesite Cost
Per Tonne |
|
4,120 |
3.27 |
92.5% |
C$77 |
At Meadowbank, 2014 production exceeded guidance largely due
to the mining of higher than expected grades in the Goose pit in
the first half of the year. Production levels are expected to
gradually decline from 2015 to 2017 due to a decline in grade as
the current reserve base is depleted. In 2015,
approximately 45% of the production is expected to occur in the
first half of the year. Expected production increases in the
second half of 2015 would be due to higher grades being mined
from the Portage E3 pit.
The Company is evaluating a potential expansion of the Vault
pit, which could result in approximately 150,000 to 200,000
ounces being added to the mine plan starting in 2017. A
positive decision on the Vault expansion could affect the
distribution of ounces produced in 2016 to 2018. A decision
on this expansion is expected to be made by the second half of
2015. In addition, a major drill program is planned at
Amaruq in 2015 to expand the initial 1.5 million ounce inferred
resource base (see the discussion on reserves and resources
below) with the goal of potentially developing the deposit as a
satellite operation to Meadowbank.
Southern Business
Pinos Altos
Forecast
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
145,000 |
165,000 |
170,000 |
n.a. |
Current Guidance (oz) |
171,019 (actual) |
175,000 |
175,000 |
175,000 |
Pinos Altos
2015 Forecast
|
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
2,336 |
2.48, 94.0% |
64.9, 40.9% |
$54 |
At Pinos Altos, mill throughput has steadily increased from
the original design rate of 4,000 tpd to the current average of
approximately 5,500 tpd. A series of improvements have
contributed to increased production and cost reduction in the
mining and processing areas. As a result of these improvements,
the current production guidance for 2015 to 2017 is slightly
higher than previously estimated. Year-over-year variances
in guidance for 2015 and 2016 are attributable to mine sequence
and ore grade.
Creston Mascota
Forecast
|
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
40,000 |
40,000 |
40,000 |
n.a. |
Current Guidance (oz) |
47,842 (actual) |
50,000 |
45,000 |
40,000 |
Creston Mascota
2015 Forecast
|
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
2,047 |
1.3, 57.25% |
16.0, 7.5% |
$14 |
The completion of the Phase III heap leach pad and
agglomeration projects, combined with the future expansion of the
Phase IV heap leach pad, have resulted in slightly higher
expected annual production for 2015 through 2017 at Creston
Mascota. In 2015, further drilling is planned on the Bravo
deposit to evaluate it as a potential source of additional
production.
La India Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
50,000 |
90,000 |
90,000 |
n.a. |
Current Guidance (oz) |
75,093 (actual) |
90,000 |
90,000 |
95,000 |
La India 2015
Forecast
|
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
5,355 |
0.86, 61.0% |
14.75, 10.5% |
$9 |
Commercial production was declared at La India in February
2014, and the mine has now achieved its design expectation with
annual production rates in 2015 to 2017 expected to be between
90,000 and 95,000 ounces. The current guidance is unchanged
from previous levels reported last year.
Near-term Projects Could Potentially Enhance
Production in 2017 and Beyond
The current three year plan sets out estimated average annual
gold production of approximately 1.6 million ounces through
2016. The estimated production level in 2017 is currently
forecast to be approximately 1.5 million ounces. However,
studies are underway at the following projects (none of which
have yet been approved for construction) to further enhance the
Company's production profile:
- Expansion of the Vault Deposit at Meadowbank
- Development of the Deep Zone at Goldex
- Production from Akasaba West at Goldex
- Rimpi Zone Development at Kittila
- Development of the Kuotko satellite deposit at Kittila
Last year at Meadowbank, approximately 246,000 ounces were
removed from reserves at the
Vault deposit
due to a change in the gold price assumption used to calculate
reserves at the end of 2013. Given the current favourable
US to Canadian dollar foreign exchange rate and lower fuel costs,
the Company is evaluating the potential for a portion of these
ounces to be added back into the mine plan at Meadowbank starting
in 2017. A decision to proceed with the extraction of these
additional ounces will likely be made by the second half of
2015.
At the Goldex mine, exploration and development activities
have been accelerated on the
Deep Zone
(top of the D Zone) with the goal of outlining a mineable reserve
and completion of a technical study by late 2015 or early
2016. Development of the Deep Zone and the Akasaba West
deposit (see below) could enhance production levels or extend the
current mine life and reduce operating costs.
In January 2014, Agnico Eagle acquired the
Akasaba West
gold-copper deposit from Alexandria Minerals (AZX:TSXV) for C$5.0
million and a 2% NSR royalty on any gold production exceeding
210,000 ounces. Located less than 30 km from Goldex, the
Akasaba West deposit could potentially create flexibility and
synergies for the Company's operations in the Abitibi region by
utilizing extra milling capacity at both Goldex and LaRonde,
while reducing overall costs. Akasaba currently hosts an
indicated resource of approximately 200,000 ounces (8.1 million
tonnes at 0.77 g/t gold and 0.44% copper). Permitting and
technical studies are underway with the goal of moving the
project towards a production decision.
Drilling on the
Rimpi Zone
at Kittila has outlined a significant zone of mineralization with
potentially wider widths and better grades than those currently
being mined. The underground ramp at Kittila is being
extended to reach the Rimpi Zone, and it will also provide
further underground drill access to test for additional depth
extensions of the Rimpi, Suuri and Roura mineralized zones.
In addition, a surface ramp has been collared to test the Rimpi
Zone at shallower depths. With the potential for higher
mill capacity, development of the Rimpi zone could result in
increased future production levels at Kittila.
At the
Kuotko deposit
, located approximately 15 kilometers north of Kittila, a
drilling program is expected to begin in March 2015 to infill and
expand the existing 170,000 ounce inferred resource (1.8 million
tonnes at 2.9 g/t gold). Upon completion of the drilling,
studies will be carried out to assess the viability of mining the
deposit via an open pit.
Development/Expansion Projects in Nunavut and
Mexico Expected to Provide Longer-term Growth Opportunities
beyond 2017
The expansion and development projects set out below, which
have not yet been approved for construction, have the potential
to add to the Company's production profile in 2018 and
beyond.
Amaruq - Maiden Resource Suggests Good Potential to
Extend Meadowbank Mine Life
The Amaruq project, which is located approximately 50
kilometres northwest of the Meadowbank mine in Nunavut, has
declared its first resource within approximately 18 months from
the commencement of exploration drilling. In 2014, a $10
million exploration program was completed that consisted
primarily of 31,598 metres of drilling (144 holes) and collection
of environmental baseline data.
Permitting and preliminary engineering activities have
continued for the possible construction of an all-weather
exploration road linking the Amaruq exploration site to the
Meadowbank mine. This road would facilitate exploration
activities such as fuel, equipment and personnel
transportation.
The 100% owned Amaruq property consists of 114,760 hectares of
Inuit and federal crown land. Agnico Eagle acquired its initial
interest in April 2013 pursuant to a mineral exploration
agreement with Nunavut Tunngavik Incorporated.
A large portion of last year's drill program was focused on
the Whale Tail Zone, where 60 holes (17,261 metres) outlined up
to 5 mineralized lenses along a strike length of 1.2 kilometre
and to a depth of up to 350 metres below surface.
Mineralization at Whale Tail remains open in all directions.
At year-end 2014, inferred resources at Amaruq were estimated
to be 6.6 million tonnes at 7.1 g/t gold for a total of 1.5
million ounces of gold. Of the total inferred resource,
approximately 1.4 million ounces are contained in the Whale Tail
deposit, with the balance hosted in the I, V, and R zones.
A 50,000 metre drill program (costing approximately $20
million) is expected to begin in March 2015, with the intent of
infilling and expanding the known mineralized zones and testing
other favourable targets (for additional details see the
exploration section below). A resource update is expected in the
second half of 2015, and the Company hopes to ultimately develop
Amaruq as a satellite operation to Meadowbank.
Meliadine - Reserves Increased, and Technical Study
Nearing Completion
Located near Rankin Inlet, Nunavut, Canada, the Meliadine
project was acquired in July 2010, and is one of Agnico Eagle's
largest gold projects in terms of resources. The Company owns
100% of the 111,757 hectare property.
Activities in 2014 included infill and step-out diamond
drilling, ramp development, permitting, camp operation and work
on an updated technical study. In 2014, approximately 1,363
metres of underground development were completed, with the ramp
now extending to a vertical depth of approximately 215 metres
below the surface.
On January 27, 2015, the Minister of Aboriginal Affairs and
Northern Development for Canada approved the environmental
assessment findings and recommendations made by the Nunavut
Impact Review Board (NIRB) on their Part 5 Review of the
Meliadine project under the Nunavut Land Claim Agreement. The
Minister directed the NIRB to issue Agnico Eagle with a Project
Certificate for the Meliadine Gold Project setting out the terms
and conditions under which the Meliadine project can proceed.
These conditions were set out in the NIRB report that was
submitted to the Minister on October 10, 2014. The NIRB will now
convene all of the regulatory agencies for a final workshop which
is expected to lead to the issuance of the Project Certificate
within the next two months.
The issuance of the Project Certificate would enable Agnico
Eagle to apply for the various operating
permits/licenses/authorizations required to actually start
construction and operation of a gold mine at Meliadine. One of
the key permits is the Type A Water License which authorizes all
water use and waste disposal requirements for the Meliadine mine
during the construction, operation and ultimate reclamation
phases of the project. The Company is currently working on this
application with the intent to file with the Nunavut Water Board
in the next few months.
The expected capital budget for 2015 is approximately $64
million. Of this total, approximately $21 million is
allocated towards underground development (2,500 metres). This
development will allow for cost-effective exploration and
conversion drilling of the deeper parts of the Tiriganiaq and
Wesmeg/Normeg zones, which should provide a better understanding
of the mineralization and help to optimize potential mining
plans. A portion of the 2015 budget is also allocated to camp
operation, construction activities, and permitting and technical
services.
An updated technical study is progressing with completion
expected later in the first quarter of 2015. The timing of
estimating or making capital expenditures on the project beyond
2015 will be subject to Board approval and prevailing market
conditions.
Pinos Altos/Mascota - Drilling and Further
Studies Planned on Satellite Zones
At Pinos Altos and Mascota, approximately 14,000 metres of
infill and conversion drilling are planned in 2015 for the
Sinter, Bravo and Cubiro satellite deposits. This drilling
along with additional metallurgical testing and geotechnical
studies will be used to further evaluate the potential to develop
these zones as satellite deposits to the existing operations.
El Barqueno- Targeting an Initial Resource by the
end of 2015
The El Barqueno property in Jalisco State, Mexico covers a
land position which is larger than the strike radius of the
mineralization at both the La India and Pinos Altos properties
combined. Previous operators outlined several mineralized zones
through surface exploration and diamond drilling.
The Company believes this property has the potential to host
Pinos Altos style gold-silver mineralization (with potential
copper credits) that could be developed as a combination open
pit/underground mine with mill and heap leach processing.
As such, Agnico Eagle plans to carry out a $15 million
exploration program this year to evaluate several of the known
mineralized zones with a focus on developing an initial resource
by year-end 2015. For additional details see the exploration
section below.
Continued Capital Discipline Expected in 2015
At current spot input prices, Agnico Eagle expects to fund
this year's capital expenditures, which are estimated to total
approximately $481 million, from operating cash flow.
The estimated capital expenditures for 2015 include
approximately $304 million of sustaining capital at the mines and
$164 million on new projects and expansions, as set out in the
table below. Additionally, approximately $13 million is
estimated to be spent on capitalized exploration and
approximately $94 million on expensed exploration (which is a 68%
increase over 2014 levels), project evaluation and corporate
development.
Estimated 2015 Capital
Expenditures
|
|
|
Sustaining |
Development
Projects
|
Capitalized
Exploration
|
Expensed
Exploration
|
(millions of $) |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde |
|
|
67 |
|
1 |
2 |
Lapa |
|
|
5 |
|
1 |
1 |
Goldex |
|
|
14 |
26 |
2 |
|
Kittila |
|
|
50 |
11 |
2 |
7 |
Meadowbank |
|
|
43 |
|
|
|
Meliadine
|
|
|
|
64
|
1 |
|
Canadian Malartic |
|
|
40 |
19 |
|
6 |
|
|
|
219 |
120 |
7 |
16 |
Southern Business |
|
|
|
|
|
|
Pinos Altos |
|
|
50 |
44 |
2 |
2 |
La India |
|
|
25 |
|
3 |
2 |
Creston Mascota |
|
|
10 |
|
|
|
|
|
|
85 |
44 |
5 |
4 |
Project Eval/Corp Dev |
|
|
|
|
|
24 |
Other Exploration |
|
|
|
|
1 |
50 |
Total Expenditures |
|
|
304 |
164 |
13 |
94 |
2015 Exploration Program and Budget - Main Focus on
Amaruq and El Barqueno
A large component of the 2015 exploration program will be
focused on the Amaruq project near the Meadowbank mine in Nunavut
and the El Barqueno project in Jalisco State, Mexico. These
exploration programs are designed to infill and expand known
deposits and test other favourable target areas. The
ultimate goal is to delineate reserves and resources that can
supplement the Company's existing production profile.
The Amaruq exploration camp is expected to reopen in late
February 2015, with winter drilling to start in March 2015 and
completion of the camp expansion to accommodate 80 personnel by
late March 2015.
Drilling and field work in 2015, including ground geophysics,
is planned to again focus on the Whale Tail zone (especially
under the lake), with additional investigation of the I, V and R
deposits and other known zones and targets (such as the boulder
field with visible gold near Mammoth Lake). The initial
2015 exploration program contemplates approximately 50,000 metres
of drilling with a budget for approximately $20 million. The 2015
program also includes engineering and permitting activities.
At El Barqueno, the 2015 exploration budget is approximately
$15 million and includes approximately 25,000 metres of
drilling. Currently, one drill rig is testing targets at
the Angostura and Azteca zones, and two portable drills are
operating at the Peña de Oro zone.
Depreciation Guidance
Agnico Eagle expects its 2015 depreciation and amortization
expense to be in the range of $550 to $575 million.
General & Administrative Cost Guidance
Agnico Eagle expects 2015 general and administration expense
to be between $68 to $78 million, excluding share based
compensation. In 2015, share based compensation is expected
to be between $20 to $25 million including stock option expense
(which is a non-cash item) of between $18 to $22 million, which
is in line with previous years.
Please see the supplemental financial data section of the
Financial and Operating Database on the Company's website for
additional historical financial data.
Tax Guidance for 2015
For 2015, the jurisdictional tax rates are expected to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
The Company's overall tax rate is expected to be between 40%
and 45%.
Gold Reserves increase 18% to Approximately 20.0M
ounces, Reserve Grade Increased at Key Operations
To calculate the 2014 year-end reserves, the Company continued
to use conservative assumptions ($1,150/ounce gold and $18/ounce
silver, and a C$/US$ exchange rate of 1.08).
At year-end 2014, the Company's proven and probable gold
reserves (net of 2014 production) totaled 259 million tonnes
grading 2.40 g/t gold, containing approximately 20.0 million
ounces of gold. This is an increase of approximately 3.1 million
ounces of gold in addition to the 1,429,288 ounces of payable
gold production in 2014 (1,656,174 ounces of in-situ gold
mined).
The increase in the Company's reserves is largely due to its
acquisition of a 50% interest in the Canadian Malartic mine in
mid-June 2014. As of the end of 2014, Canadian Malartic (50%
basis) has the Company's second largest mineral reserves
containing approximately 4.3 million ounces of gold.
While the Company's reserves have increased 18% based on
contained gold, the grade has decreased to 2.40 g/t gold. This is
the result of the Canadian Malartic reserves being significantly
lower grade than most of the other operations at 1.06 g/t gold.
The average grade for the rest of the Company's operations has
increased to 3.69 g/t gold as of year-end 2014, compared with
3.51 g/t gold a year earlier. Agnico Eagle has one of the
highest reserve grades among its North American peers.
Highlights from the December 31, 2014 Reserve Statement:
- Gold reserves increased to approximately 20.0 million
ounces from approximately 16.9 million a year ago
- Increased gold reserve grades at LaRonde (5.20 g/t versus
5.0 g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos
(3.01 g/t versus 2.84 g/t)
- Not including Canadian Malartic, the average gold reserve
grade at the Company's operations increased to 3.69 g/t as of
year-end 2014, compared with 3.51 g/t a year earlier.
- At Meliadine, there was an addition of 494,000 ounces of
reserves and an increase in the reserve grade to 7.44 g/t gold
from 7.38 g/t gold.
The Company's year-end 2014 gold reserves are set out
below:
Gold Reserves |
Proven & Probable |
Average Gold Reserve |
By Mine |
Reserve (000s gold ounces) |
Grade (g/t) |
|
2014 |
2013 |
Change |
2014 |
2013 |
Change |
Northern Business |
|
|
|
|
|
|
LaRonde |
3,432 |
3,880 |
-448 |
5.20 |
5.00 |
0.20 |
Canadian Malartic (50%) |
4,329 |
- |
4,329 |
1.06 |
- |
- |
Lapa |
170 |
281 |
-111 |
5.84 |
5.97 |
-0.13 |
Goldex |
340 |
372 |
-32 |
1.49 |
1.52 |
-0.03 |
Kittila |
4,524 |
4,714 |
-190 |
4.93 |
4.64 |
0.29 |
Meadowbank |
1,168 |
1,751 |
-583 |
3.08 |
3.24 |
-0.16 |
Meliadine |
3,335 |
2,841 |
494 |
7.44 |
7.38 |
0.06 |
Subtotal/Average |
17,299 |
13,839 |
3,459 |
2.57 |
4.60 |
-2.03 |
Southern Business |
|
|
|
|
|
|
Pinos Altos |
1,763 |
1,974 |
-211 |
3.01 |
2.84 |
0.17 |
Creston Mascota |
236 |
292 |
-56 |
1.25 |
1.28 |
-0.03 |
La India |
679 |
758 |
-79 |
0.85 |
0.87 |
-0.02 |
Subtotal/Average |
2,678 |
3,024 |
-346 |
1.70
|
1.69 |
0.01 |
Total Reserves |
19,976 |
16,865 |
3,112 |
2.40 |
3.51 |
-1.11 |
Amounts presented in the table and in this news release have
been rounded to the nearest thousand. See "Detailed Mineral
Reserve and Resource Data (as at December 31, 2014)" set out at
the end of this news release for more details.
In prior years, economic parameters used to model reserves for
all properties were calculated using historic three-year average
metals prices and foreign exchange rates in accordance with the
SEC guidelines. These guidelines require the use of prices
that reflect current economic conditions at the time of reserve
determination, which the SEC has interpreted to mean historic
three-year average prices. Given the current lower
commodity price environment, Agnico Eagle has decided to continue
to use more conservative gold and silver prices of $1,150 per
ounce and $18 per ounce, respectively, for the December 2014
reserve estimates. These prices are well below the
three-year historic gold and silver price averages (from January
1, 2012 to December 31, 2014) of approximately $1,448 per ounce
and $25 per ounce, respectively.
For the December 2014 reserve calculations, the same economic
parameters were used at all of the Company's mines and advanced
projects, except for the Canadian Malartic mine. The Canadian
Malartic Partnership, owned by Agnico Eagle (50%) and Yamana Gold
Inc. (50%), which owns and operates the Canadian Malartic mine,
has estimated the mine's current reserves using the following
parameters: US$1,300/ounce gold and a C$/US$ exchange
rate of 1.10. On August 13, 2014, the Partnership filed a
NI 43-101 report on the Canadian Malartic mine, which provided an
update on reserves and resources (for details please see the news
release dated August 13, 2014).
Details of the economic parameters used in generating the
December 2014 reserves are shown with the detailed reserve and
resource tables near the end of this news release.
While the gold price (in US dollars) and currency exchange
rates have changed since a year ago, the gold price has remained
relatively stable over the past 12 months, when reported in the
Canadian dollar, Euro or Mexican peso. The following table shows
the changes in gold price (in various currencies) and exchange
rates over the past two years.
Comparison of assumptions used in 2013 and 2014 to
estimate reserves
|
Dec. 31, 2014 |
Dec. 31, 2013 |
Currency exchange
rate |
|
|
|
|
|
|
C$/US$ |
1.08 |
1.03 |
|
US$/Euro |
1.30 |
1.32 |
|
MXP/US$ |
13.00 |
12.75 |
Gold price per ounce in local currencies
US$ |
|
|
|
US$1,150 |
|
|
|
US$1,200 |
C$ |
|
|
|
C$1,242 |
|
|
|
C$1,236 |
Euros |
|
|
|
¬885 |
|
|
|
¬909 |
Mexican pesos |
|
|
|
MPX14,950 |
|
|
|
MPX15,300 |
The other increase in reserves came at the Meliadine advanced
exploration project, where revisions to the estimation parameters
based on an updated technical study, that is currently being
prepared, have led to an increase of almost 500,000 ounces of
gold in reserves. The Meliadine project now has more gold in
reserves than all but the three largest of Agnico Eagle's
operating mines.
The decline in reserves at the other mines was largely due to
mine production during 2014 and an increase in cut-off grade,
partially offset by the conversion of resources to reserves from
drilling programs.
The Meadowbank mine had the largest decline in reserves due to
479,245 ounces of in-situ gold mined in 2014 (for a record high
453,000 ounces of gold production).
It is the Company's goal to maintain its gold reserves at
approximately 10 to 15 times its annual gold production
rate. The current reserves are well within this range when
compared to the Company's projected annual 2015 production
rate.
In addition to gold, Agnico Eagle's proven and probable
reserves include by-product metals of approximately 67 million
ounces of silver at the Pinos Altos, LaRonde, La India and
Creston Mascota mines (69.5 million tonnes grading an average of
29.93 g/t silver), plus 131,231 tonnes of zinc and 51,250 tonnes
of copper at the LaRonde mine (20.5 million tonnes grading 0.64%
zinc and 0.25% copper).
At a gold price of $1,300 per ounce (leaving all other
assumptions unchanged), there would be an approximate 6.3%
increase in the gold contained in proven and probable reserves.
Conversely, using a gold price of $1,000 (leaving all other
assumptions unchanged), there would be an estimated 6.2% decrease
in the gold contained in proven and probable reserves.
Measured and Indicated Gold Resources Grow by
Approximately 56%, While Inferred Resources Increase by
Approximately 33%
Highlights from the December 31, 2014 Resource statement:
- Measured and indicated resources now total approximately
317 million tonnes grading 1.47 g/t, or approximately 15.0
million ounces of gold. This represents an increase of about
56% or 5.4 million ounces
- At LaRonde, conversion drilling led to the establishment of
the first indicated resource below the 311 level of
approximately 444,000 ounces gold
- Conversion drilling at the Meliadine project led to an
approximately 211,000 ounce increase in indicated gold
resources
- At Goldex, there was an increase of 191,000 ounces of gold
contained in indicated resources from the Deep zone
- Inferred resources total approximately 209 million tonnes
grading 2.01 g/t, or 13.5 million ounces of gold. This
represents an increase of 33% or approximately 3.4 million
ounces of gold in inferred resources
- An initial inferred resource of approximately 1.5 million
ounces was declared at the Amaruq discovery
- The Meliadine inferred resource increased 28% (750,000
ounces gold) to 14.1 million tonnes grading 7.65 g/t gold
(containing approximately 3.5 million ounces gold)
The Company's measured and indicated resources now total
approximately 317 million tonnes grading 1.47 g/t, or 15.0
million ounces of gold. This represents an increase of about 56%
or 5.4 million ounces and a 23% decrease in grade over the
December 2013 measured and indicated resource (see the February
12, 2014 news release for comparison). The increase in contained
gold is due to the acquisition of a 50% interest in the Canadian
Malartic mine in mid-June 2014 and the successful conversion
drilling from inferred resources at many of the operations.
The largest factor contributing to the increase in the
measured and indicated resources this year was the addition of a
50% interest in the Canadian Malartic mine and other properties
with the June 2014 acquisition of Osisko Mining, as shown in the
table below. While the Canadian Malartic mine has approximately
1.0 million ounces of gold in measured and indicated resources
(Agnico Eagle's 50% portion), as of December 31, 2014, the
exploration properties brought even larger resources to the
Company. Agnico Eagle's 50% interest in the Hammond Reef
project in northwest Ontario contains a measured and indicated
resource of 104.2 million tonnes grading 0.67 g/t gold
(approximately 2.3 million ounces of gold). A new mineral
resource estimate for the Upper Beaver deposit in the Kirkland
Lake project in northeast Ontario resulted in an indicated
resource of 3.2 million tonnes grading 7.00 g/t gold and 0.26%
copper (approximately 0.7 million ounces of gold - Agnico Eagle's
50% interest).
Year-end 2014 reserves and resources of the properties gained
by the June 2014 acquisition of Osisko Mining (Agnico Eagle's 50%
portion)
Category/Property |
Gold grade
(g/t gold)
|
Gold
(000 oz)
|
Tonnes
(000)
|
Reserves |
|
|
|
Proven Reserves
Canadian Malartic mine (open pit) |
0.92 |
736 |
24,969 |
Probable Reserves
Canadian Malartic mine (open pit) |
1.10 |
3,593 |
101,978 |
Total Proven & Probable
reserves |
1.06 |
4,329 |
126,947 |
Measured Resources |
|
|
|
Canadian Malartic mine (open
pit) |
0.84 |
77 |
2,843 |
Hammond Reef project (open pit) |
0.70 |
1,862 |
82,831 |
Subtotal Measured Resources |
0.70 |
1,939 |
85,674 |
Indicated Resources |
|
|
|
Canadian Malartic mine (open
pit) |
0.85 |
891 |
32,708 |
Upper Beaver project
(underground) |
7.00 |
722 |
3,210 |
Hammond Reef project (open pit) |
0.57 |
388 |
21,377 |
Subtotal Indicated Resources |
1.09 |
2,002 |
57,296 |
Subtotal Canadian Malartic
M&I Resources |
0.85 |
968 |
35,552 |
Subtotal Hammond Reef M&I
Resources |
0.67 |
2,250 |
104,208 |
Total Measured and Indicated
Resources |
0.86 |
3,940 |
142,970 |
Inferred Resources |
|
|
|
Canadian Malartic mine (open
pit) |
0.76 |
556 |
22,655 |
Upper Beaver project (open pit) |
1.99 |
125 |
1,957 |
Upper Beaver project
(underground) |
4.66 |
398 |
2,654 |
Subtotal Upper Beaver
project |
3.53 |
523 |
4,610 |
Hammond Reef project (open pit) |
0.74 |
6 |
250 |
Total Inferred Resources |
1.23 |
1,085 |
27,516 |
The Canadian Malartic mine reserves were estimated in the
method described in the June 16, 2014 Canadian Malartic technical
report using the assumptions of $1,300/oz gold and a C$/US$
exchange rate of 1.10. The Hammond Reef project resources were
estimated using the assumptions of $1,400 per ounce gold and a
0.32 g/t gold cut-off grade for the West Pit and a 0.34 g/t gold
cut-off grade for the East Pit. The Upper Beaver deposit is
in the Kirkland Lake project; its resources were estimated using
the assumptions of $1,200 per ounce gold, $3.00/pound copper and
a C$/US$ exchange rate of 1.08.
Underground resources at Upper Beaver use a cut-off grade of 2.5
g/t gold-equivalent, and metallurgical recoveries for gold and
copper of 95% and 90%, respectively.
Other than the properties acquired through the acquisition of
Osisko Mining, there was an increase of about 1.4 million ounces
of gold in measured and indicated resources in 2014. The largest
increase in indicated resources came at the LaRonde mine, where
conversion drilling below the 311 level (3,110 metres below
surface) led to establishing indicated resources containing
approximately 444,000 ounces gold, the first indicated resources
at this depth. Conversion drilling at the Meliadine project led
to an approximately 236,000 ounce increase in indicated gold
resources. There was also an increase of approximately
210,000 ounces of gold in the indicated resources at the Kittila
mine, as a result of underground conversion drilling from the
exploration ramp that is extending to the north.
At Goldex, there was an increase of approximately 191,000
ounces of gold contained in indicated resources from the Deep
zone. The objective is to outline initial reserves from the Deep
zone in late 2015 or early 2016. The other large increase
came at the Akasaba project, purchased in January 2014 and
located about 30 kilometres from Goldex, where approximately
200,000 ounces of gold contained in 8.1 million tonnes grading
0.77 g/t gold and 0.44% copper has been estimated as of December
31, 2014.
The Company's inferred resources now total 209 million tonnes
grading 2.01 g/t, or approximately 13.5 million ounces of gold.
This represents an increase of 33% or approximately 3.4 million
ounces of gold in inferred resources (see the February 12, 2014
news release for comparison).
The largest part of this increase is the significant initial
inferred resource of 6.6 million tonnes grading 7.07 g/t gold
(approximately 1.5 million ounces gold) at the high-grade Amaruq
discovery, which is 50 kilometres from the Meadowbank mine in
Nunavut. Two-thirds of the Amaruq-resources are near-surface, and
more than 90% are in the Whale Tail zone.
The properties that were obtained through the June 2014
acquisition of Osisko Mining account for approximately 1.1
million ounces of inferred gold resources (on a 50% basis).
Of this increase, approximately 556,000 ounces are at the
Canadian Malartic mine and approximately 523,000 ounces are at
Upper Beaver.
The Meliadine inferred resources increased 28% (approximately
750,000 ounces gold) to 14.1 million tonnes grading 7.65 g/t gold
(containing approximately 3.5 million ounces gold).
Exploration drilling at Meliadine on the Pump and Wesmeg zones
and a review of the 3D model were responsible for the
increase.
Exploration drilling at depth was responsible for a 24%
increase (approximately 234,000 ounces) in inferred gold
resources at Kittila, and for a 12% (approximately 167,000
ounces) increase in inferred gold resources at Goldex.
Successful conversion drilling at depth at the LaRonde mine
removed approximately 400,000 ounces gold from the inferred
resource category to measured and indicated resources.
The distribution of resources by property is set out in the
following table. For full details including tonnages and grade,
see the Detailed Mineral Reserve and Resource Data table in this
news release.
December 31, 2014 Mineral Resources
|
Measured & Indicated |
|
Inferred |
|
Resources |
|
Resources |
|
(000 oz gold) |
|
(000 oz gold) |
Northern Business |
|
|
|
LaRonde |
711 |
|
1,197 |
Canadian Malartic (50%) |
968 |
|
556 |
Lapa |
147 |
|
225 |
Goldex |
2,095 |
|
1,540 |
Kittila |
1,350 |
|
1,230 |
Meadowbank |
798 |
|
422 |
Meliadine |
3,293 |
|
3,464 |
Amaruq |
- |
|
1,501 |
Bousquet/Ellison |
1,008 |
|
778 |
Hammond Reef (50%) |
2,250 |
|
6 |
Upper Beaver (Kirkland Lake) (50%) |
722 |
|
523 |
Akasaba |
201 |
|
2 |
Other |
31 |
|
420 |
Subtotal |
13,575 |
|
11,867 |
|
|
|
|
Southern Business |
|
|
|
Creston Mascota |
48 |
|
153 |
Pinos Altos |
706 |
|
496 |
La India |
684 |
|
971 |
Subtotal |
1,438 |
|
1,620 |
Total Resources |
15,013 |
|
13,487 |
Northern Business Operating Review
LaRonde Mine - Production Increasing, Cash costs
Declining
The 100% owned LaRonde mine in northwestern Quebec achieved
commercial production in 1988.
The LaRonde mill processed an average of 5,847 tpd in the
fourth quarter of 2014, compared with an average of 6,726 tpd in
the corresponding period of 2013. Minesite costs per tonne
were approximately C$97 in the fourth quarter of 2014, higher
than the C$89 per tonne experienced in the fourth quarter of
2013. The lower tonnage and increase in costs compared to
the prior-year period is primarily due to 10 days of unscheduled
downtime related to a production hoist drive failure at shaft #4
in December. Production hoisting has since returned to normal and
the integrity of the drive has been restored.
Milling performance for the full year 2014 was approximately
5,713 tpd versus 6,354 tpd in 2013. The lower throughput in
2014 compared to 2013 relates primarily to the planned shutdown
for the installation of new hoist drives to replace obsolete
production and service hoist equipment in the Penna shaft.
Minesite costs per tonne for the full year 2014 were
approximately C$99, unchanged from C$99 per tonne in
2013.
LaRonde's total cash costs per ounce on a by-product basis
were $590 in the fourth quarter of 2014 on payable production of
59,316 ounces of gold. This compares with the fourth
quarter of 2013 when total cash costs per ounce on a by-product
basis were $653 on production of 51,336 ounces of gold. The
decrease in total cash costs in the 2014 period was largely due
to higher production (due to higher gold grades and the improved
recoveries from the CIP circuit) and ongoing cost savings
(especially labour, electricity and chemicals).
For the full year 2014, LaRonde's total cash costs per ounce
on a by-product basis were $668 on gold production of 204,652
ounces. This compares to total cash costs per ounce on a
by-product basis of $767 on gold production of 181,781 ounces in
2013. The higher production and lower costs in the 2014
period are primarily due to the reasons outlined above.
In 2014, the LaRonde mine also produced approximately 10,515
tonnes of zinc (47% less than in 2013), 1.3 million ounces of
silver (39% less than in 2013), and 4,997 tonnes of copper (3%
more than in 2013) as by-products to the gold production. These
totals are consistent with the change in the metals mix as the
mine goes deeper and becomes more gold rich as opposed to
zinc/silver rich in the upper levels. In 2015,
approximately 81% of production is expected to come from the
lower mine area (below the 215 level).
In 2014, work continued on the installation of the coarse ore
conveyor system that will extend from the 293 level to the
crusher on the 280 level. This new conveyor, which is
expected to be commissioned in the second half of 2015, should
help mining flexibility and reduce congestion in the deeper
portions of the mine.
Studies are underway to assess the potential to extend the
reserve base and carry out mining activities between the 311 and
371 levels at LaRonde. At present, the reserve base extends
to the 311 level, which is 3.1 kilometers below the
surface. In 2014, conversion drilling below the 311 level
added approximately 444,000 ounces of gold to the indicated
resources.
Canadian Malartic General Partnership - New
Quarterly Record for Mill Throughput
In June 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana")
acquired all of the issued and outstanding common shares of
Osisko Mining Corporation and created the 50:50 Partnership ("the
Partnership") that now owns and operates the Canadian Malartic
mine in northwestern Quebec through a joint management
committee.
During the fourth quarter of 2014, the Canadian Malartic mill
(on a 100% basis) processed an average of 53,232 tpd, which was a
new quarterly record. Minesite costs per tonne were lower than
budget at approximately C$19 (excluding royalties) as throughput
improved and optimization efforts continued. The fourth quarter
included a five day scheduled shutdown for mill maintenance.
Throughput in the second half of 2014 averaged approximately
53,000 tpd, compared to approximately 49,500 tpd in the first
half of 2014. This improvement in throughput is largely due
to productivity improvements made by the Partnership since the
acquisition in June 2014.
For the full year 2014, the Canadian Malartic (on a 100%
basis) mill processed an average of 51,248 tpd, with minesite
costs per tonne of approximately C$19.76 (excluding royalties).
Minesite costs per tonne have been better than the guidance of
C$21 per tonne (excluding royalties) that was issued on July 30,
2014, largely due to better productivity. The average stripping
ratio in 2014 was 2.54 to 1.0.
For the fourth quarter of 2014, Agnico Eagle's share of
production at the Canadian Malartic mine was 66,369 ounces of
gold at a total cash cost per ounce of $684 on a by-product
basis.
Given the strong operational performance in the second half of
2014, total gold production in 2014 (on a 100% basis) was 535,470
ounces, which exceeded the 2014 guidance forecast range of
510,000 ounces to 530,000 ounces.
Since acquiring its interest in the Canadian Malartic mine on
June 16, 2014, Agnico Eagle's share of production was 143,008
ounces of gold at total cash costs per ounce of $701 on a
by-product basis.
On August 13, 2014, the Company filed a technical report on
the Canadian Malartic mine which provided an update on reserves
and resources (for details please see the news release dated
August 13, 2014).
In Agnico Eagle's third quarter news release, total capital
costs for 2014 at the Canadian Malartic mine (on a 100% basis)
were estimated at approximately C$154.6 million. Actual capital
costs for the full year 2014 were approximately C$139 million.
The change is largely due to optimization of the Gouldie pit and
minor capital spending deferrals into 2015.
Mr. Serge Blais was appointed General Manager of the Canadian
Malartic Mine, effective February 9, 2015, replacing Mr. Eric
Tremblay who is leaving effective February 27, 2015.
Prior to joining Canadian Malartic, Mr. Blais spent nine years
at Agnico Eagle, where he was most recently the Assistant General
Manager at the LaRonde mine. Mr. Blais has extensive
experience in the mining industry. He spent 12 years with Cambior
where he served as Mine Superintendent at the Sleeping Giant mine
and Senior Supervisor at the Rosebel open pit mine in Suriname.
Mr. Blais is a Mining Engineer with a degree from Laval
University.
Canadian Malartic Mine - Optimization Efforts
Continuing
Since acquiring the mine in June 2014, the Partnership has
been looking at a variety of ways to optimize the operations. The
current crushing circuit has a nameplate capacity of 55,000
tpd. Throughput levels are forecast to be approximately
52,500 tpd in the first half of 2015, increasing to approximately
55,000 tpd in the second half of 2015. Production at
Canadian Malartic is forecast to be approximately 280,000 ounces
(Agnico Eagle's 50% share) in 2015. The potential second half
increase in throughput in 2015 is partly contingent upon updating
the existing operating permits.
The study evaluating increasing throughput rates to 60,000 tpd
has been put on hold until the 55,000 tpd pre-crushing throughput
level has been consistently achieved.
Ounce reconciliation with the block model continues to be
positive (3% to 4% higher) and is an opportunity provide
additional production flexibility going forward.
Proposed throughput optimization activities in 2015
include:
- Use of a 994 loader to feed the gyratory crusher between
trucks
- Reduced truck waiting time at the crusher
- North wall project - focus on accelerated stripping to
access more tonnes at higher grades from the north side of the
pit
- Improved blasting fragmentation to reduce the size of ore
sent to the primary crusher
- Increase the crusher circuit uptime
- Add a new auxiliary feeder
- Reduce the loss of loading equipment teeth
Proposed productivity improvements include:
- Creation of a productivity/continuous improvement team with
a focus on reducing operating costs
- Evaluating the potential to convert to LNG fueled trucks,
which are cheaper to operate and have lower greenhouse gas
emissions
- Renegotiation of major contracts on fuel and consumables
(evaluating potential synergies with other Agnico Eagle Abitibi
operations)
- Program to review manpower requirements (including
contractors)
- Optimization of the maintenance program for mobile
equipment - audit done - action plan in place
- Optimization of liner wear in all major crushing components
- trials ongoing
- Looking at possible modification of the SAG mill liner
design to increase the grinding efficiency and expected liner
life - testing ongoing with potential benefits being realized
after Q2 2015
- Potential to use larger grinding media in the SAG mill -
testing continuing
- Initiation of projects to reduce consumables consumption
(being carried out in conjunction with the continuous
improvement project)
- Optimization of waste rock management plans with an aim of
trying to reduce cycle times - this should ultimately result in
shorter hauling distances
- Optimization of the life-of-mine plan - work is ongoing,
completion expected in Q2
Exploration Activities - C$14 million Budget
Approved for 2015
In addition to joint, indirect ownership of the Canadian
Malartic mine, Agnico Eagle and Yamana are also jointly exploring
a portfolio of properties in the Kirkland Lake area and the
Pandora and Wood-Pandora properties in the Abitibi region of
Quebec. Agnico Eagle and Yamana, indirectly through
Canadian Malartic Corporation each hold a 50% interest in
Kirkland Lake and Pandora properties, while the Wood-Pandora
property is a joint venture between Globex Mining Enterprises
Inc. (50%) and Canadian Malartic Corporation.
From June 16 to December 31, 2014, Canadian Malartic
Corporation spent C$8.15 million (on a 100% basis) on these
properties with a focus on the Upper Beaver project in Kirkland
Lake, and the Pandora property, which adjoins Agnico Eagle's Lapa
mine. Activities included the compilation of historical work at
the various Kirkland Lake properties and an update of the
resource base at the Upper Beaver project. Exploration
expenditures in the fourth quarter of 2014 were approximately
C$4.0 million (on a 100% basis).
Work at Upper Beaver focused on testing for near surface
mineralization, and several holes were drilled to test for
mineralization below the current intercepts that encountered
high-grade intervals at depths below 1,500 metres. Near surface
drilling outlined a small, potentially open-pit resource.
Drilling at depth below 1,500 metres encountered mineralization
that is comparable in grade and width to that obtained by
previous operators.
This new drilling has been incorporated into a new resource
estimate that is included in Agnico Eagle's December 31, 2014
reserve and resource update (for additional details see the
reserve and resource section outlined above). The updated
resources are scheduled to be incorporated into a study that will
evaluate potential production scenarios at Upper
Beaver.
The proposed budget for Kirkland Lake in 2015 (100% basis) is
approximately C$6.7 million.
At Pandora, seven holes were drilled to test the near surface
North Branch zone, and five drill holes were completed from the
101-W Exploration drift at the adjacent Lapa mine to test the
mineralization at the South Branch target. A select summary
of significant drill results from the North and South Branch
zones at Pandora are presented in the table below.
Drill hole |
Zone |
From
(metres) |
To (metres) |
Estimated true
width (metres) |
Gold grade (g/t)
(uncapped) |
PN14-12 |
North Branch Surface |
184.4 |
193.1 |
8.7 |
5.36 |
PN14-13 |
North Branch Surface |
139.5 |
154.3 |
14.8 |
5.67 |
and |
|
215.35 |
219.05 |
3.7 |
12.05 |
PN14-17 |
South Branch UG |
544.5 |
560.5 |
16 |
5.01 |
including |
|
544.5 |
555 |
10.5 |
6.07 |
|
Drill collar coordinates* |
Drill hole ID |
UTM North |
UTM East |
Elevation
(metres
above sea
level) |
Azimuth |
Dip
(degrees) |
PN14-12 |
5345422.38 |
701106.669 |
339.389 |
185 |
-60 |
PN14-13 |
5345422.56 |
701106.675 |
339.452 |
180 |
-66 |
PN14-17 |
5345566.81 |
700583.216 |
332.023 |
190 |
-65 |
Results from the shallow drilling have validated some of the
historic results from previous operators and a follow up drill
program is being evaluated. At depth, the 101-W drift is
scheduled to be extended starting in February with diamond
drilling expected to resume at the end of the second quarter of
2015.
The proposed budget for Pandora in 2015 (100% basis) is
approximately C$3.1 million.
Lapa - Zulapa Z7 Zone Yields Higher Grades and
Better Recoveries in Q4 2014
The 100% owned Lapa mine in northwestern Quebec achieved
commercial production in May 2009.
The Lapa circuit, located at the LaRonde mill, processed an
average of 1,760 tpd in the fourth quarter of 2014. This
compares with an average of 1,821 tpd in the fourth quarter of
2013. The slightly lower throughput in the 2014 period was
largely due to a reduction in the number of stopes available for
mining during the quarter compared to the 2013 period.
Minesite costs per tonne were C$109 in the fourth quarter of
2014, compared to C$103 realized in the fourth quarter of 2013.
Costs in the 2014 period were higher due to the reason above.
For the full year 2014, Lapa averaged 1,750 tpd, which is
almost identical to 2013 levels. Full-year minesite costs in 2014
were C$107 per tonne, slightly below the C$110 achieved in
2013. Costs were lower in 2014 largely due to lower labour
costs and reduced consumption of consumables (explosives,
shotcrete and mill chemicals).
Payable production in the fourth quarter of 2014 was 25,611
ounces of gold at a total cash cost per ounce on a by-product
basis of $607. This compares with the fourth quarter of
2013, when production was 26,323 ounces of gold at total cash
cost per ounce on a by-product basis of $626. Higher
recoveries and good cost containment resulted in lower costs
during the fourth quarter of 2014 compared to the 2013
period.
For the full year 2014, payable production was 92,622 ounces
of gold at total cash costs per ounce on a by-product basis of
$667. The prior year production was 100,730 ounces of gold
at total cash costs per ounce on a by-product basis of
$677. Production in 2014 was lower due to reduced grades,
while costs were lower due to successful cost cutting measures
implemented by the Company.
At Lapa, 2014 and 2015 are the last two years of full
production based on the current life of mine plan. In 2016,
production is expected to exhibit a decline from the current
levels. Additional exploration drilling in the parallel
Zulapa Z8 zone and on the adjoining Pandora property could
potentially extend the mine life (see discussion under the
Canadian Malartic General Partnership).
Goldex - Higher Tonnage, Grades and Recoveries
Drive Increased Gold Production and Lower Cash Costs
The 100% owned Goldex mine in northwestern Quebec began
operation in 2008 but mining operations in the original Goldex
Extension Zone (GEZ) orebody were suspended in October 2011 (see
October 19, 2011 news release). In July 2012, the M and E
satellite zones were approved for development. Mining operations
at GEZ remain suspended. Mining operations resumed on the M
and E satellite zones in September 2013. Initial mill testing,
late in the third quarter of 2013, yielded 1,505 ounces of
pre-commercial gold production. The Goldex mine achieved
commercial production in the fourth quarter of 2013.
The Goldex mill processed an average of 6,251 tpd in the
fourth quarter of 2014. This compares with an average of
5,343 tpd in the fourth quarter of 2013. The higher throughput in
the 2014 period was due to better than expected underground
mining rates compared to the 2013 period.
Minesite costs per tonne were approximately C$34 in the fourth
quarter of 2014, lower than the C$37 per tonne experienced in the
fourth quarter of 2013. The decrease in costs over the
prior-year period is partly due to accelerated mining rates,
ongoing costs containment efforts and higher throughput
levels.
For the full year 2014, the Goldex mill averaged 5,799 tpd,
which is higher than the 2013 throughput level. Full-year
minesite costs in 2014 were C$33 per tonne, lower than the C$37
achieved in 2013. Costs were higher in 2014 largely due to
the factors set out above.
Payable gold production in the fourth quarter of 2014 was
29,463 ounces at a total cash cost per ounce on a by-product
basis of $583. This compares with the fourth quarter of 2013,
when production was 19,305 ounces of gold at total cash cost per
ounce on a by-product basis of $894. Higher tonnage,
recoveries and good cost containment resulted in lower costs
during the fourth quarter of 2014 compared to the 2013
period.
For the full year 2014, payable production was 100,433 ounces
of gold at total cash costs of $638 per ounce on a by-product
basis. The prior year production was 20,810 ounces of gold
at total cash costs of $894 per ounce on a by-product
basis. Production in 2014 was higher than 2013 due to the
full year of contribution at Goldex.
Rehabilitation of the surface ramp portal has been completed
and rehabilitation is continuing on the pre-existing ramp to
provide access to the M3 and M4 satellite zones for conversion
drilling later this year.
Development of the exploration ramp into the DX zone (the top
of the Deep zone) has been accelerated. This ramp is designed to
provide access for additional exploration drilling, with a goal
of outlining a mineable reserve and the completion of a technical
study by late 2015 or early 2016.
The central portion of the Deep zone is believed to contain a
higher grade core. A recent hole demonstrated good continuity of
mineralization in this area, yielding 4.18 g/t gold over 157.5
metres.
Drill hole |
Zone |
From
(metres) |
To (metres) |
Estimated true
width (metres) |
Gold grade (g/t)
(uncapped) |
GD76-004 |
Deep |
222.0 |
379.5 |
157.5 |
4.18 |
|
Drill collar coordinates* |
Drill hole ID |
UTM North |
UTM East |
Elevation
(metres
above sea level) |
Azimuth |
Dip
(degrees) |
GD76-004 |
5330741.0859 |
286831.4141 |
4603.2032 |
69.44 |
-86.92 |
Development of the Deep zone would have the potential to
further extend the mine's life. Given the strong operational
performance achieved to date, the Goldex mining approach may also
open up other mining opportunities in the Abitibi region.
Meadowbank - Record Gold Production and Lower Costs
in 2014
The 100% owned Meadowbank mine in Nunavut, northern Canada,
achieved commercial production in March 2010.
The Meadowbank mill processed an average of 11,160 tpd in the
fourth quarter of 2014, compared to the 11,398 tpd achieved in
the fourth quarter of 2013. For the full year 2014, the
Meadowbank mill processed an average of 11,313 tpd, compared to
11,350 tpd in the full year 2013. Mill throughput for the
fourth quarter 2014 was lower than the comparable period of 2013
due to variable hardness of the ore. Year-over-year mill
throughput levels were relatively stable due to ongoing
improvements in equipment availability and maintenance.
Minesite costs per tonne were a record low C$72 in the fourth
quarter and C$73 for the full year of 2014. These costs
were lower than the C$78 per tonne in the fourth quarter and full
year 2013, respectively. The improvement in cost per tonne
was primarily driven by improved productivity, the 2014 cost
management program and ongoing cost controls, compared to the
respective 2013 period.
Payable production in the fourth quarter of 2014 was 86,716
ounces of gold at total cash costs per ounce on a by-product
basis of $757. This compares with the fourth quarter of
2013 when 123,433 ounces were produced at total cash costs per
ounce on a by-product basis of $629. The lower production
and higher costs in the 2014 period compared to the 2013 period
are primarily due to fewer treated tonnes and lower grades.
Full year 2014 payable gold production was a record 452,877
ounces at total cash costs per ounce on a by-product basis of
gold of $599. In 2013, the mine produced 430,613 ounces at
total cash costs per ounce on a by-product basis of $723.
The increase in year over year production and decline in total
cash costs is primarily due to the mining of higher than expected
grades in the Goose pit in the first half of the year,
consistently high crusher throughput levels, slightly better
recoveries and strong cost containment programs.
Production levels are expected to gradually decline from 2015
to 2017 due to a decline in grade as the current reserve base is
depleted. In 2015, approximately 45% of the production is
expected to occur in the first half of the year. Production is
expected to increase in the second half of 2015 due to higher
grades being mined from the Portage E3 pit.
Last year at Meadowbank, approximately 246,000 ounces were
removed from reserves at the Vault deposit due to a change in the
gold price assumption used to calculate reserves at the end of
2013. Given the current favourable US to Canadian dollar
foreign exchange rate and lower fuel costs, the Company is
evaluating the potential for a portion of these ounces to be
added back into the mine plan at Meadowbank starting in 2017 to
extend the mine life. A decision to proceed with the
extraction of these additional ounces will likely be made by the
second half of 2015.
In addition, a 40,000 metre drill program is planned at Amaruq
starting in March 2015 to expand the initial 1.5 million ounce
inferred resource base with the goal of potentially developing
the deposit as a satellite operation to Meadowbank.
Kittila - Recent Mill Expansion and Record
Underground Tonnage Drives Higher Throughput Levels in Q4
2014
The 100% owned Kittila mine in northern Finland achieved
commercial production in 2009.
The Kittila mill processed an average of 3,980 tpd in the
fourth quarter of 2014 compared to the 3,349 tpd in the fourth
quarter of 2013. Minesite costs per tonne at Kittila were
approximately ¬75 in the fourth quarter of 2014, compared to
¬70 in the fourth quarter of 2013. Costs increased in
the fourth quarter of 2014 due to the increased usage of
consumables related to the mill expansion (particularly on
chemicals, electricity and grinding media) when compared with the
2013 period.
The mill expansion was completed ahead of schedule by six
months and below the forecast budget of $103 million.
Throughput continues to ramp-up to design capacity of 4,000 tpd
and the Company expects unit costs to improve once steady state
operations are achieved.
For the full year 2014, the mill processed an average of 3,168
tpd as compared with 2013 when the mill processed an average of
2,559 tpd. The increase in throughput relates to the
completion of the mill expansion at the end of September
2014. For the full year 2014, the minesite costs per tonne
were ¬78, compared to ¬73 in 2013. The increased
minesite costs per tonne in the 2014 period primarily relate to
the reasons mentioned above.
Fourth quarter 2014 payable gold production at Kittila was
43,130 ounces with a total cash cost per ounce on a by-product
basis of $809. In the fourth quarter of 2013, the mine
produced 41,710 ounces at total cash costs per ounce on a
by-product basis of $679. The higher production and higher
costs in the 2014 period relate to the completion of the mill
expansion which continues to ramp-up to design capacity.
Costs increased in the fourth quarter of 2014 due to the
increased usage of consumables related to the mill expansion
(particularly on chemicals, electricity and grinding media) which
also affected recoveries during the ramp-up of the mill
expansion.
For the full year 2014, payable gold production from Kittila
was 141,742 ounces at total cash costs per ounce on a by-product
basis of $845. In 2013, the mine produced 146,421 ounces of
gold at total cash costs per ounce on a by-product basis of
$598. The lower production in 2014 was largely due to the
planned mill shutdown in September 2014 to tie-in the
expansion. The higher total cash costs are largely due to
lower production and higher costs associated with the usage of
consumables as mentioned above.
Ongoing cost initiatives include projects to utilize the waste
heat produced from the oxygen plants in other areas of the mine
(i.e., buildings and mine) and ventilation management to reduce
energy costs.
Drilling on the Rimpi Zone at Kittila has outlined a
significant zone of mineralization with potentially wider widths
and better grades than those currently being mined. The
main underground ramp at Kittila is being extended to reach the
Rimpi Zone and a new surface ramp is also being developed to
access the shallower portions of the Rimpi deposit. The
main ramp will provide further drill access to test for depth
extensions of the known mineralized zones.
At the Kuotko deposit, located approximately 15 kilometers
north of Kittila, a drilling program is scheduled to commence in
March 2015 to infill and expand the existing approximately
170,000 ounce inferred resource (1.8 million tonnes at 2.9 g/t
gold). Upon completion of the drilling, studies will be
carried out to assess the viability of mining the deposit via an
open pit.
Southern Business Operating Review
Pinos Altos - Shaft Commissioning on Schedule for
Late 2015
The 100% owned Pinos Altos mine in northern Mexico achieved
commercial production in November 2009.
The Pinos Altos mill processed 5,466 tpd in the fourth quarter
of 2014, compared to 5,313 tpd per day processed in the fourth
quarter of 2013. During the fourth quarter of 2014, approximately
131,000 tonnes of ore were stacked on the leach pad at Pinos
Altos, compared to 184,300 tonnes in the comparable 2013 period.
Minesite cost per tonne at Pinos Altos was $48 in the fourth
quarter of 2014 slightly higher than the $46 in the fourth
quarter of 2013. The difference in minesite cost per tonne
was largely attributable to variations in the proportion of heap
leach ore to milled ore and open pit ore to underground ore, and
routine fluctuations in the waste to ore stripping ratio in the
open pit mines.
For the full year 2014, the Pinos Altos mill processed an
average of 5,350 tpd, compared to 5,262 tpd processed in 2013. In
2014, approximately 567,800 tonnes of ore were stacked on the
leach pad at Pinos Altos, compared to approximately 805,200
tonnes in 2013. Minesite cost per tonne at Pinos Altos for full
year period in 2014 were approximately $48, compared to
approximately $43 in 2013, with the difference due to the reasons
mentioned above.
Payable production in the fourth quarter of 2014 was 40,670
ounces of gold at a total cash cost per ounce on a by-product
basis of $597. This compares with production of 46,490 ounces at
a total cash cost per ounce on a by-product basis of $443 in the
fourth quarter of 2013. Lower production in 2014 is largely due
to slightly lower grades processed over the comparable period
last year. The increase in the year over year total cash cost per
ounce is largely due to lower silver production and a decline in
realized silver prices compared to the prior year period.
For the full year 2014, Pinos Altos produced 171,019 ounces of
gold at a total cash cost per ounce on a by-product basis of
$533. This is in contrast to 2013 when the mine produced 181,773
ounces of gold at a total cash cost per ounce on a by-product
basis of $372. The lower ounces produced and increase in the cash
costs per ounce on a year-over-year basis is largely due to the
reasons mentioned above.
The $106 million Pinos Altos shaft sinking project remains on
schedule for completion in 2016. Shaft sinking is ongoing
(currently at a depth of approximately 493 metres). When the
shaft is completed, it will allow better matching of the mill
capacity with the future mining capacity at Pinos Altos once the
open pit mining operation begins to wind down as planned over the
next several years.
The Company continues to evaluate a number of regional
satellite opportunities. A 6,000 metre in-fill and
conversion drill program is scheduled to begin on the Sinter
deposit in Q1 2015. This data will be incorporated into a
scoping study along with metallurgical testing and geotechnical
data in order to better understand the development potential of
this zone.
Creston Mascota - Record Q4 and Annual Tonnes
Stacked
The Creston Mascota heap leach has been operating as a
satellite operation to the Pinos Altos mine since late
2010.
Approximately 550,800 tonnes of ore were stacked on the
Creston Mascota leach pad during the fourth quarter of 2014,
compared to approximately 325,500 tonnes stacked in the fourth
quarter of 2013. The new agglomerator installed in the third
quarter of 2014 allowed for an increase in crushed ore processing
capacity compared to the 2013 period. Minesite costs per tonne at
Creston Mascota were $14 in the fourth quarter of 2014, compared
to $15 in the fourth quarter of 2013.
For the full year 2014, approximately 1,793,800 tonnes of ore
were stacked on the Creston Mascota leach pad, compared to
approximately 1,276,200 tonnes stacked in the full year 2013.
Minesite costs per tonne at Creston Mascota were $16 for the full
year 2014, compared to $16 in 2013. Fewer tonnes were stacked in
the 2013 period due to the temporary suspension of activities on
the Phase I leach pad.
Payable gold production at Creston Mascota in the fourth
quarter of 2014 was 12,989 ounces at a total cash cost per ounce
on a by-product basis of $556. This compares to 10,666 ounces at
a total cash cost per ounce on a by-product basis of $450 during
the fourth quarter of 2013. Production was higher in the 2014
period due to more tonnes stacked, slightly offset by lower
grades, compared to the 2014 period. Stacking more tonnes
in the fourth quarter of 2014 resulted in a higher total cost
that was not completely offset by the increased ounces, resulting
in a higher total cash cost per ounce compared to the comparable
period in 2013.
Payable gold production for the full year 2014 totaled 47,842
ounces at a total cash cost per ounce on a by-product basis of
$578, compared to 34,027 ounces at a total cash cost per ounce on
a by-product basis of $509 in 2013. The lower production in 2013
is reflective of the temporary shutdown of the operation from
January until April 2013. Costs were higher in the 2014 period
for the same reasons outlined above.
In 2015, construction is expected to begin on the Phase 4
leach pad at Creston Mascota. Evaluation of the Bravo
satellite zone will continue with a 5,000 metre infill and
conversion drilling program expected to commence around
mid-2015.
La India - Record Quarterly Gold Production
The La India mine in Sonora, Mexico, located approximately 70
kilometres from the Company's Pinos Altos mine, was acquired in
November 2011 through the purchase of Grayd Resources which
included a 56,000 hectare land position in the Mulatos Gold belt.
Commissioning of the mine commenced ahead of schedule in the
third quarter of 2013. Design, permitting, construction and
start-up of the La India mine were completed within 22 months of
the acquisition.
In 2013, the mine reported 3,180 ounces of pre-commercial
production, and commercial production was declared as at February
1, 2014.
Approximately 1,426,700 tonnes of ore were stacked on the La
India leach pad during the fourth quarter of 2014, compared to
approximately 595,000 tonnes stacked in the fourth quarter of
2013. Minesite costs per tonne at La India were $9 in the fourth
quarter of 2014.
Payable gold production at La India in the fourth quarter of
2014 was 23,274 ounces at a total cash cost per ounce on a
by-product basis of $496.
For the full year 2014, approximately 4,773,200 tonnes of ore
were stacked on the La India leach pad. Minesite costs per
tonne at La India were $8 for the full year 2014.
Payable gold production for the full year 2014 totaled 75,093
ounces at a total cash cost per ounce on a by-product basis of
$487.
Installation of the fine material bypass system in the
crushing circuit was in full operation in the fourth quarter of
2014, which resulted in 42% more tonnes being crushed in the
fourth quarter of 2014 compared to the previous quarter's
average. Engineering and design of the second phase leach
pad commenced in the fourth quarter of 2014 with detailed
engineering and construction bids expected later in the first
quarter of 2015.
The Company is evaluating exploration programs to test
resource halos around the current pits and to test for
mineralization between the currently defined ore bodies. In
addition, initial studies are underway to evaluate the potential
to expand production at La India.
Annual General Meeting
Friday, May 1, 2015 at 11:00 am (E.D.T.)
Sheraton Centre Toronto Hotel (Dominion Ballroom)
123 Queen Street West
Toronto, ON M5H 2M9
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its nine mines are
located in Canada, Finland and Mexico, with exploration and
development activities in each of these regions as well as in the
United States. The Company and its shareholders have full
exposure to gold prices due to its long-standing policy of no
forward gold sales. Agnico Eagle has declared a cash dividend
every year since 1983.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including
''total cash costs per ounce'' and ''minesite costs per tonne''
and "all-in sustaining cost per ounce" that are not recognized
measures under IFRS. These data may not be comparable to data
presented by other gold producers. For a reconciliation of these
measures to the most directly comparable financial information
presented in the consolidated financial statements prepared in
accordance with IFRS and for an explanation of how management
uses these measures, see "Reconciliation of Non-GAAP Financial
Performance Measures" below. The total cash cost per ounce
of gold produced is presented on both a by-product basis
(deducting by-product metal revenues from production costs) and
co-product basis (before by-product metal revenues). The total
cash cost per ounce of gold produced on a by-product basis is
calculated by adjusting production costs as recorded in the
consolidated statements of income (loss) for by-product revenues,
unsold concentrate inventory production costs, smelting, refining
and marketing charges and other adjustments, and then dividing by
the number of ounces of gold produced. The total cash cost per
ounce of gold produced on a co-product basis is calculated in the
same manner as the total cash cost per ounce of gold produced on
a by-product basis except that no adjustment is made for
by-product metal revenues. Accordingly, the calculation of total
cash cost per ounce of gold produced on a co-product basis does
not reflect a reduction in production costs or smelting, refining
and marketing charges associated with the production and sale of
by-product metals. The total cash cost per ounce of gold produced
is intended to provide information about the cash-generating
capabilities of the Company's mining operations. Management also
uses these measures to monitor the performance of the Company's
mining operations. As market prices for gold are quoted on a per
ounce basis, using the total cash cost per ounce of gold produced
on a by-product basis measure allows management to assess a
mine's cash-generating capabilities at various gold prices.
All-in sustaining costs are used to show the full cost of gold
production from current operations. The Company calculates all-in
sustaining costs per ounce of gold produced as the aggregate of
total cash costs on a by-product basis, sustaining capital
expenditures (including capitalized exploration), general and
administrative expenses (including stock options) and reclamation
expenses divided by the amount of gold produced. The
Company's methodology for calculating all-in sustaining costs may
not be similar to the methodology used by other producers that
disclose all-in sustaining costs. The Company may change
the methodology it uses to calculate all-in sustaining costs in
the future, including in response to the adoption of formal
industry guidance regarding this measure by the World Gold
Council. Management is aware that these per ounce measures of
performance can be affected by fluctuations in and exchange
rates. and, in the case of total cash costs per ounce of gold
produced on a by-product basis, by-product metal prices.
Management compensates for these inherent limitations by using
these measures in conjunction with minesite costs per tonne
(discussed below) as well as other data prepared in accordance
with IFRS.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating exchange rates and metal
prices. This news release also contains information as to
estimated future total cash costs per ounce, all-in sustaining
costs and minesite costs per tonne. The estimates are based upon
the total cash costs per ounce, all-in sustaining costs and
minesite costs per tonne that the Company expects to incur to
mine gold at its mines and projects and, consistent with the
reconciliation of these actual costs referred to above, do not
include production costs attributable to accretion expense and
other asset retirement costs, which will vary over time as each
project is developed and mined. It is therefore not practicable
to reconcile these forward-looking Non-GAAP financial measures to
the most comparable IFRS measure.
The scientific and technical information contained in this
news release relating to Northern Business operations has been
approved by Christian Provencher, Ing., Vice-President, Canada
and a "Qualified Person" for the purposes of NI 43-101. The
scientific and technical information contained in this news
release relating to Southern Business operations has been
approved by Tim Haldane, P.Eng., Senior Vice-President,
Operations - USA and Latin America and a "Qualified Person" for
the purposes of NI 43-101. The scientific and technical
information contained in this news release relating to
exploration has been approved by Alain Blackburn, Ing., Senior
Vice-President, Exploration and a "Qualified Person" for the
purposes of NI 43-101.
The scientific and technical information relating to Agnico
Eagle's reserves and resources contained herein has been approved
by Daniel Doucet, Senior Corporate Director, Reserve Development.
Mr. Doucet is a designated Ing. with the Ordredes ingénieurs
du Québec and a qualified person as defined by NI
43-101.
Detailed Mineral Reserve and Resource Data (as at December 31,
2014)
|
Au |
Ag |
Cu |
Zn |
Pb |
Au |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s oz) |
(000s) |
Proven Mineral Reserve |
Northern Business |
|
|
|
|
|
|
|
LaRonde (underground) |
3.76 |
21.84 |
2.95 |
4.58 |
0.51 |
538 |
4,460 |
Canadian Malartic (open pit) (50%) |
0.92 |
|
|
|
|
736 |
24,969 |
Lapa (underground) |
5.87 |
|
|
|
|
157 |
832 |
Goldex (underground) |
1.70 |
|
|
|
|
11 |
203 |
Kittila (open pit) |
3.53 |
|
|
|
|
23 |
207 |
Kittila (underground) |
4.67 |
|
|
|
|
107 |
714 |
Kittila Total Proven |
4.41 |
|
|
|
|
131 |
921 |
Meadowbank (open pit) |
1.50 |
|
|
|
|
53 |
1,090 |
Meliadine (open pit) |
7.31 |
|
|
|
|
8 |
34 |
Southern Business |
|
|
|
|
|
|
|
Pinos Altos (open pit) |
1.93 |
65.87 |
|
|
|
3 |
48 |
Pinos Altos (underground) |
3.30 |
86.68 |
|
|
|
254 |
2,394 |
Pinos Altos Total Proven |
3.27 |
86.27 |
|
|
|
257 |
2,441 |
Creston Mascota (open pit) |
0.76 |
8.60 |
|
|
|
5 |
187 |
La India (open pit) |
0.53 |
8.62 |
|
|
|
2 |
99 |
Subtotal Proven Mineral Reserve
|
1.67 |
|
|
|
|
1,897 |
35,236 |
|
Probable Mineral Reserve
|
Northern Business |
|
|
|
|
|
|
|
LaRonde (underground) |
5.60 |
18.70 |
2.37 |
6.89 |
0.36 |
2,893 |
16,072 |
Canadian Malartic (open pit) (50%) |
1.10 |
|
|
|
|
3,593 |
101,978 |
Lapa (underground) |
5.50 |
|
|
|
|
13 |
74 |
Goldex (underground) |
1.49 |
|
|
|
|
329 |
6,893 |
Kittila (open pit) |
3.46 |
|
|
|
|
15 |
139 |
Kittila (underground) |
4.96 |
|
|
|
|
4,378 |
27,475 |
Kittila Total Probable |
4.95 |
|
|
|
|
4,393 |
27,614 |
Meadowbank (open pit) |
3.24 |
|
|
|
|
1,116 |
10,705 |
Meliadine (open pit) |
5.13 |
|
|
|
|
638 |
3,862 |
Meliadine (underground) |
8.33 |
|
|
|
|
2,690 |
10,048 |
Meliadine Total Probable |
7.44 |
|
|
|
|
3,327 |
13,910 |
Southern Business |
|
|
|
|
|
|
|
Pinos Altos (open pit) |
3.02 |
75.28 |
|
|
|
373 |
3,840 |
Pinos Altos (underground) |
2.95 |
79.70 |
|
|
|
1,132 |
11,948 |
Pinos Altos Total Probable |
2.97 |
78.63 |
|
|
|
1,506 |
15,788 |
Creston Mascota (open pit) |
1.27 |
13.63 |
|
|
|
231 |
5,657 |
La India (open pit) |
0.85 |
6.06 |
|
|
|
677 |
24,783 |
Subtotal Probable Mineral Reserve |
2.52 |
|
|
|
|
18,080 |
223,475 |
Northern Total Proven and Probable
Reserves |
2.57 |
|
|
|
|
17,299 |
209,756 |
Southern Total Proven and Probable
Reserves |
1.70 |
|
|
|
|
2,678 |
48,955 |
Total Proven and Probable Mineral
Reserves |
2.40 |
|
|
|
|
19,976 |
258,711 |
|
Au |
Ag |
Cu |
Zn |
Pb |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s) |
Measured Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
Canadian Malartic (open pit) (50%) |
0.84 |
|
|
|
|
2,843 |
Goldex (underground) |
1.86 |
|
|
|
|
12,360 |
Kittila (underground) |
2.78 |
|
|
|
|
820 |
Meadowbank (open pit) |
1.07 |
|
|
|
|
432 |
Hammond Reef (open pit) (50%) |
0.70 |
|
|
|
|
82,831 |
Southern Business |
|
|
|
|
|
|
La India (open pit) |
0.38 |
3.06 |
|
|
|
2,667 |
Subtotal Measured Mineral Resource |
0.85 |
|
|
|
|
101,953 |
Indicated Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde (underground) |
3.26 |
23.35 |
0.24 |
1.01 |
0.11 |
6,791 |
Canadian Malartic (open pit) (50%) |
0.85 |
|
|
|
|
32,708 |
Lapa (underground) |
4.29 |
|
|
|
|
1,067 |
Goldex (underground) |
1.97 |
|
|
|
|
21,409 |
Kittila (open pit) |
2.85 |
|
|
|
|
89 |
Kittila (underground) |
2.98 |
|
|
|
|
13,262 |
Kittila Total Indicated |
2.98 |
|
|
|
|
13,351 |
Meadowbank (open pit) |
2.74 |
|
|
|
|
4,747 |
Meadowbank (underground) |
4.85 |
|
|
|
|
2,341 |
Meadowbank Total Indicated |
3.44 |
|
|
|
|
7,088 |
Meliadine (open pit) |
4.31 |
|
|
|
|
7,685 |
Meliadine (underground) |
5.52 |
|
|
|
|
12,561 |
Meliadine Total Indicated |
5.06 |
|
|
|
|
20,246 |
Akasaba |
0.77 |
|
|
|
|
8,130 |
Bousquet (open pit) |
1.79 |
|
|
|
|
11,044 |
Bousquet (underground) |
5.63 |
|
|
|
|
1,704 |
Bousquet Total Indicated |
2.31 |
|
|
|
|
12,748 |
Ellison (underground) |
4.54 |
|
|
|
|
429 |
Hammond Reef (open pit) (50%) |
0.57 |
|
|
|
|
21,377 |
Upper Beaver (underground) (50%) |
7.00 |
|
0.26 |
|
|
3,211 |
Swanson (open pit) |
1.93 |
|
|
|
|
504 |
Southern Business |
|
|
|
|
|
|
Pinos Altos (open pit) |
1.16 |
21.31 |
|
|
|
1,101 |
Pinos Altos (underground) |
1.91 |
46.46 |
|
|
|
10,836 |
Pinos Altos Total Indicated |
1.84 |
44.14 |
|
|
|
11,938 |
Creston Mascota (open pit) |
0.68 |
4.69 |
|
|
|
2,229 |
La India (open pit) |
0.39 |
0.20 |
|
|
|
51,799 |
Subtotal Indicated Mineral
Resource |
1.77 |
|
|
|
|
215,026 |
Northern Total Measured and Indicated
Resources |
1.70 |
|
|
|
|
248,346 |
Southern Total Measured and Indicated
Resources |
0.65 |
|
|
|
|
68,633 |
Total Measured & Indicated Mineral
Resources |
1.47 |
|
|
|
|
316,979 |
|
Au |
Ag |
Cu |
Zn |
Pb |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s) |
Inferred Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde (underground) |
4.23 |
17.40 |
0.26 |
0.84 |
0.07 |
8,794 |
Canadian Malartic (open pit) (50%) |
0.76 |
|
|
|
|
22,655 |
Lapa (open pit Zulapa) |
3.14 |
|
|
|
|
391 |
Lapa (underground) |
8.00 |
|
|
|
|
724 |
Lapa Total Inferred |
6.30 |
|
|
|
|
1,114 |
Goldex (underground) |
1.64 |
|
|
|
|
29,241 |
Kittila (open pit) |
3.79 |
|
|
|
|
346 |
Kittila (underground) |
4.32 |
|
|
|
|
8,546 |
Kittila Total Inferred |
4.30 |
|
|
|
|
8,892 |
Meadowbank (open pit) |
3.15 |
|
|
|
|
1,108 |
Meadowbank (underground) |
4.36 |
|
|
|
|
2,213 |
Meadowbank Total Inferred |
3.96 |
|
|
|
|
3,321 |
Amaruq (open pit) |
6.60 |
|
|
|
|
4,819 |
Amaruq (underground) |
8.34 |
|
|
|
|
1,783 |
Amaruq Total Inferred |
7.07 |
|
|
|
|
6,603 |
Meliadine (open pit) |
5.42 |
|
|
|
|
1,031 |
Meliadine (underground) |
7.83 |
|
|
|
|
13,053 |
Meliadine Total Inferred |
7.65 |
|
|
|
|
14,083 |
Bousquet (open pit) |
1.16 |
|
|
|
|
679 |
Bousquet (underground) |
4.54 |
|
|
|
|
3,888 |
Bousquet Total Inferred |
4.04 |
|
|
|
|
4,567 |
Ellison (underground) |
4.56 |
|
|
|
|
1,263 |
Akasaba (open pit) |
0.98 |
|
0.39 |
|
|
65 |
Hammond Reef (open pit) (50%) |
0.74 |
|
|
|
|
251 |
Upper Beaver (open pit) (50%) |
1.99 |
|
0.20 |
|
|
1,957 |
Upper Beaver (underground) (50%) |
4.66 |
|
0.30 |
|
|
2,654 |
Upper Beaver Total Inferred (50%) |
3.53 |
|
0.26 |
|
|
4,611 |
Kuotko, Finland (open pit) |
2.89 |
|
|
|
|
1,823 |
Kylmakangas, Finland (underground) |
4.11 |
31.11 |
|
|
|
1,896 |
Southern Business |
|
|
|
|
|
|
Pinos Altos (open pit) |
0.95 |
22.45 |
|
|
|
10,773 |
Pinos Altos (underground) |
2.77 |
51.97 |
|
|
|
1,872 |
Pinos Altos Total Inferred |
1.22 |
26.82 |
|
|
|
12,645 |
Creston Mascota (open pit) |
1.07 |
13.98 |
|
|
|
4,462 |
La India (open pit) |
0.37 |
0.04 |
|
|
|
82,562 |
Northern Total Inferred Resource |
3.38 |
|
|
|
|
109,177 |
Southern Total Inferred Resource |
0.51 |
|
|
|
|
99,669 |
Total Inferred Resource |
2.01 |
|
|
|
|
208,847 |
Tonnage amounts and contained metal amounts presented in this
table have been rounded to the nearest thousand. Amounts
presented in this table may not add up due to rounding.
Reserves are not a sub-set of resources.
Forward-Looking Statements
The information in this news release has been prepared as at
February 11, 2015. Certain statements contained in this document
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995
and "forward-looking information" under the provisions of
Canadian provincial securities laws and are referred to herein as
"forward-looking statements". When used in this document, the
words "anticipate", "expect", "estimate", "forecast", "will",
"planned" and similar expressions are intended to identify
forward-looking statements. Such statements include without
limitation: the Company's forward-looking production guidance,
including estimated ore grades, project timelines, drilling
results, metal production, life of mine estimates, production,
total cash costs per ounce, minesite costs per tonne, all-in
sustaining costs and cash flows; the estimated timing and
conclusions of technical reports and other studies; the methods
by which ore will be extracted or processed; statements
concerning expansion projects, recovery rates, mill throughput,
and projected exploration expenditures, including costs and other
estimates upon which such projections are based; estimates of
depreciation expense, general and administrative expense and tax
rates; the impact of maintenance shutdowns; statements regarding
timing and amounts of capital expenditures and other assumptions;
estimates of future reserves, resources, mineral production,
optimization efforts and sales; estimates of mine life; estimates
of future mining costs, total cash costs, minesite costs, all-in
sustaining costs and other expenses; estimates of future capital
expenditures and other cash needs, and expectations as to the
funding thereof; statements and information as to the projected
development of certain ore deposits, including estimates of
exploration, development and production and other capital costs,
and estimates of the timing of such exploration, development and
production or decisions with respect to such exploration,
development and production; estimates of reserves and resources,
and statements and information regarding anticipated future
exploration; the anticipated timing of events with respect to the
Company's mine sites and statements and information regarding the
sufficiency of the Company's cash resources and other statements
and information regarding anticipated trends with respect to the
Company's operations, exploration and the funding thereof. Such
statements and information reflect the Company's views as at the
date of this document and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements and information. Forward-looking
statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle as
of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The material factors and assumptions used in the
preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion
and analysis ("MD&A") and the Company's Annual Information
Form ("AIF") for the year ended December 31, 2103 filed with
Canadian securities regulators and that are included in its
Annual Report on Form 40-F for the year ended December 31, 2013
("Form 40-F") filed with the U.S. Securities and Exchange
Commission (the "SEC") as well as: that there are no significant
disruptions affecting operations; that production, permitting and
expansion at each of Agnico Eagle's properties proceeds on a
basis consistent with current expectations and plans; that the
relevant metals prices, exchange rates and prices for key mining
and construction supplies will be consistent with Agnico Eagle's
expectations; that Agnico Eagle's current estimates of mineral
reserves, mineral resources, mineral grades and metal recovery
are accurate; that there are no material delays in the timing for
completion of ongoing growth projects; that the Company's current
plans to optimize production are successful; and that there are
no material variations in the current tax and regulatory
environment. Many factors, known and unknown could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements and information. Such
risks include, but are not limited to: the volatility of prices
of gold and other metals; uncertainty of mineral reserves,
mineral resources, mineral grades and mineral recovery estimates;
uncertainty of future production, capital expenditures, and other
costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs;
mining risks; community protests; risks associated with foreign
operations; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated
with the Company's by-product metal derivative strategies. For a
more detailed discussion of such risks and other factors that may
affect the Company's ability to achieve the expectations set
forth in the forward-looking statements contained in this
document, see the AIF and MD&A filed on SEDAR at
www.sedar.com
and included in the Form 40-F filed on EDGAR at
www.sec.gov
, as well as the Company's other filings with the Canadian
securities regulators and the SEC. The Company does not intend,
and does not assume any obligation, to update these
forward-looking statements and information. For a detailed
breakdown of the Company's reserve and resource position see the
AIF or Form 40-F.
Notes to Investors Regarding the Use of
Resources
Cautionary Note to Investors Concerning Estimates
of Measured and Indicated Resources
This document uses the terms "measured resources" and
"indicated resources". Investors are advised that while those
terms are recognized and required by Canadian regulations, the
SEC does not recognize them.
Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves
.
Cautionary Note to Investors Concerning Estimates
of Inferred Resources
This document also uses the term "inferred resources".
Investors are advised that while this term is recognized and
required by Canadian regulations, the SEC does not recognize it.
"Inferred resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally
mineable.
Scientific and Technical Data
Cautionary Note To U.S. Investors
- The SEC permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. Agnico
Eagle Mines Limited reports mineral resource and reserve
estimates in accordance with the CIM guidelines for the
estimation, classification and reporting of resources and
reserves in accordance with the Canadian securities regulatory
authorities' (the "CSA") National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101"). These standards
are similar to those used by the SEC's Industry Guide No. 7, as
interpreted by Staff at the SEC ("Guide 7"). However, the
definitions in NI 43-101 differ in certain respects from those
under Guide 7. Accordingly, mineral reserve information contained
herein may not be comparable to similar information disclosed by
U.S. companies. Under the requirements of the SEC, mineralization
may not be classified as a "reserve" unless the determination has
been made that the mineralization could be economically and
legally produced or extracted at the time the reserve
determination is made. A "final" or "bankable" feasibility study
is required to meet the requirements to designate reserves under
Industry Guide 7. Agnico Eagle uses certain terms in this
news release, such as "measured", "indicated", and "inferred",
and "resources" that the SEC guidelines strictly prohibit U.S.
registered companies from including in their filings with the
SEC.
In prior periods, reserves for all properties were typically
estimated using historic three-year average metals prices and
foreign exchange rates in accordance with the SEC guidelines.
These guidelines require the use of prices that reflect current
economic conditions at the time of reserve determination, which
the Staff of the SEC has interpreted to mean historic three-year
average prices. Given the current lower commodity price
environment, Agnico Eagle has decided to use price assumptions
that are below the three-year averages. The assumptions used for
the mineral reserves estimates at all mines and advanced projects
as of December 31, 2014, reported by the Company on February 11,
2015, are $1,150 per ounce gold, $18.00 per ounce silver, $1.00
per pound zinc, $3.00 per pound copper, $0.91 per pound lead and
C$/US$, US$/Euro and MXP/US$ exchange rates of 1.08, 1.30 and
13.00, respectively.
For the reserves estimate at the Canadian Malartic mine, the
Company has decided to continue to report the reserves estimated
as of June 15, 2014, reported by the Company in a news release
dated August 13, 2014, minus the production to the end of 2014.
The assumptions used were $1,300 per ounce gold, a cut-off grade
between 0.28 g/t and 0.35 g/t gold (depending on the deposit),
and a C$/US$ exchange rate of 1.10.
NI 43-101 requires mining companies to disclose reserves and
resources using the subcategories of "proven" reserves,
"probable" reserves, "measured" resources, "indicated" resources
and "inferred" resources. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes diluting
materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate that,
at the time of reporting, extraction could reasonably be
justified.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and
governmental factors.
A proven mineral reserve is the economically mineable part of
a measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A probable
mineral reserve is the economically mineable part of an indicated
and, in some circumstances, a measured mineral resource. The
confidence in the modifying factors applying to a probable
mineral reserve is lower than that applying to a proven mineral
reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with confidence sufficient
to allow the application of modifying factors to support detailed
mine planning and final evaluation of the economic viability of
the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived
from adequately detailed and reliable exploration, sampling and
testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and
grade or quality continuity.
Investors are cautioned not to assume that part or
all of an inferred resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project
that includes appropriately detailed assessments of applicable
modifying factors together with any other relevant operational
factors and detailed financial analysis that are necessary to
demonstrate, at the time of reporting, that extraction is
reasonably justified (economically mineable). The results of the
study may reasonably serve as the basis for a final decision by a
proponent or financial institution to proceed with, or finance,
the development of the project. The confidence level of the study
will be higher than that of a Pre-Feasibility Study.
The mineral reserves presented in this disclosure are separate
from and not a portion of the mineral resources.
Property/Project name
and location
|
Date of most recent
Technical Report (NI
43-101) filed on
SEDAR
|
LaRonde, Bousquet &
Ellison, Quebec, Canada |
March 23, 2005 |
Canadian Malartic, Quebec, Canada |
June 16, 2014 |
Kittila, Kuotko and
Kylmakangas, Finland |
March 4, 2010 |
Swanson, Quebec,
Canada |
|
Meadowbank, Nunavut,
Canada |
February 15, 2012 |
Goldex, Quebec, Canada |
October 14, 2012 |
Lapa, Quebec, Canada |
June 8, 2006 |
Meliadine, Nunavut,
Canada |
March 8, 2011 |
Akasaba, Quebec, Canada |
|
Amaruq, Nunavut, Canada |
|
Hammond Reef, Ontario, Canada |
July 2, 2013 |
Upper Beaver (Kirkland Lake project),
Ontario, Canada |
November 5, 2012 |
Pinos Altos and Creston Mascota, Mexico |
March 25, 2009 |
La India, Mexico |
August 31, 2012 |
Additional information about each of the mineral projects that
is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4
(a), (c) and (d) can be found in Technical Reports, which may be
found at
www.sedar.com
. Other important operating information can be found in the
Company's AIF and Form 40-F.
AGNICO EAGLE MINES
LIMITED |
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS |
(thousands of
United States dollars, except where noted) |
(Unaudited) |
|
|
Three Months
Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Operating margin
(i)
by mine: |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
33,535 |
|
$ |
27,245 |
|
$ |
120,058 |
|
$ |
101,260 |
|
Lapa mine |
|
16,058 |
|
|
18,142 |
|
|
54,198 |
|
|
71,796 |
|
Goldex mine
(ii) |
|
20,694 |
|
|
6,079 |
|
|
60,738 |
|
|
6,079 |
|
Meadowbank mine |
|
39,838 |
|
|
80,819 |
|
|
305,032 |
|
|
273,059 |
|
Canadian Malartic mine
(iii) |
|
39,094 |
|
|
- |
|
|
75,984 |
|
|
- |
|
Kittila mine |
|
14,313 |
|
|
27,926 |
|
|
59,627 |
|
|
111,789 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
27,122 |
|
|
38,224 |
|
|
128,441 |
|
|
186,244 |
|
Creston Mascota deposit at Pinos
Altos |
|
8,392 |
|
|
8,309 |
|
|
31,566 |
|
|
22,097 |
|
La India mine
(iv) |
|
16,727 |
|
|
- |
|
|
56,563 |
|
|
- |
Total operating margin
(i) |
|
215,773 |
|
|
206,744 |
|
|
892,207 |
|
|
772,324 |
Amortization of property, plant
and mine development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
Exploration, corporate and
other |
|
74,390 |
|
|
61,643 |
|
|
269,441 |
|
|
262,033 |
Income (loss) before income and
mining taxes |
|
2,288 |
|
|
(960,375) |
|
|
189,138 |
|
|
(818,287) |
Income and mining taxes
expense |
|
23,571 |
|
|
(180,103) |
|
|
106,168 |
|
|
(131,582) |
Net income (loss) for the
period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
Net income (loss) per
share basic (US$) |
$ |
(0.10) |
|
$ |
(4.49) |
|
$ |
0.43 |
|
$ |
(3.97) |
Net income (loss) per
share diluted (US$) |
$ |
(0.12) |
|
$ |
(4.49) |
|
$ |
0.39 |
|
$ |
(3.97) |
Cash flows: |
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating
activities |
$ |
163,956 |
|
$ |
140,789 |
|
$ |
668,324 |
|
$ |
481,043 |
Cash used in investing
activities |
$ |
(123,126) |
|
$ |
(143,928) |
|
$ |
(851,619) |
|
$ |
(687,220) |
Cash provided by (used in)
financing activities |
$ |
(18,685) |
|
$ |
30,811 |
|
$ |
229,236 |
|
$ |
48,729 |
Realized prices
(US$): |
|
|
|
|
|
|
|
|
|
|
|
Gold (per ounce) |
$ |
1,202 |
|
$ |
1,333 |
|
$ |
1,261 |
|
$ |
1,366 |
Silver
(per ounce) |
$ |
15.60 |
|
$ |
20.20 |
|
$ |
18.27 |
|
$ |
22.42 |
Zinc (per tonne) |
$ |
2,216 |
|
$ |
1,958 |
|
$ |
2,224 |
|
$ |
1,907 |
Copper
(per tonne) |
$ |
5,961 |
|
$ |
7,275 |
|
$ |
6,596 |
|
$ |
7,160 |
Payable production
(v): |
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
59,316 |
|
|
51,336 |
|
|
204,652 |
|
|
181,781 |
|
|
Lapa mine |
|
25,611 |
|
|
26,323 |
|
|
92,622 |
|
|
100,730 |
|
|
Goldex mine
(ii) |
|
29,463 |
|
|
19,305 |
|
|
100,433 |
|
|
20,810 |
|
|
Meadowbank mine |
|
86,716 |
|
|
123,433 |
|
|
452,877 |
|
|
430,613 |
|
|
Canadian Malartic mine
(iii) |
|
66,369 |
|
|
- |
|
|
143,008 |
|
|
- |
|
|
Kittila mine |
|
43,130 |
|
|
41,710 |
|
|
141,742 |
|
|
146,421 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
40,670 |
|
|
46,490 |
|
|
171,019 |
|
|
181,773 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
12,989 |
|
|
10,666 |
|
|
47,842 |
|
|
34,027 |
|
|
La India mine
(iv) |
|
23,274 |
|
|
3,180 |
|
|
75,093 |
|
|
3,180 |
Total gold (ounces) |
|
387,538 |
|
|
322,443 |
|
|
1,429,288 |
|
|
1,099,335 |
Silver (thousands of
ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
357 |
|
|
496 |
|
|
1,275 |
|
|
2,102 |
|
|
Meadowbank mine |
|
50 |
|
|
29 |
|
|
135 |
|
|
100 |
|
|
Canadian Malartic mine
(iii) |
|
73 |
|
|
- |
|
|
151 |
|
|
- |
|
|
Kittila mine |
|
2 |
|
|
2 |
|
|
7 |
|
|
6 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
424 |
|
|
548 |
|
|
1,731 |
|
|
2,366 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
28 |
|
|
15 |
|
|
88 |
|
|
46 |
|
|
La India mine
(iv) |
|
67 |
|
|
3 |
|
|
178 |
|
|
3 |
Total Silver (thousands of
ounces) |
|
1,000 |
|
|
1,093 |
|
|
3,564 |
|
|
4,623 |
Zinc (tonnes) |
|
2,431 |
|
|
4,472 |
|
|
10,515 |
|
|
19,814 |
Cop...
per (tonnes) |
|
1,395 |
|
|
1,232 |
|
|
4,997 |
|
|
4,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable metal sold: |
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
57,761 |
|
|
50,763 |
|
|
202,338 |
|
|
184,489 |
|
|
Lapa mine |
|
28,053 |
|
|
28,784 |
|
|
92,089 |
|
|
102,673 |
|
|
Goldex mine(ii) |
|
31,701 |
|
|
16,991 |
|
|
100,326 |
|
|
16,991 |
|
|
Meadowbank mine |
|
87,742 |
|
|
130,928 |
|
|
452,023 |
|
|
430,748 |
|
|
Canadian Malartic mine(iii) |
|
66,220 |
|
|
- |
|
|
142,689 |
|
|
- |
|
|
Kittila mine |
|
42,609 |
|
|
43,442 |
|
|
139,766 |
|
|
148,561 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
44,894 |
|
|
45,117 |
|
|
176,468 |
|
|
182,964 |
|
|
Creston Mascota deposit at Pinos Altos |
|
12,849 |
|
|
10,496 |
|
|
46,698 |
|
|
31,956 |
|
|
La India mine(iv) |
|
24,019 |
|
|
- |
|
|
72,940 |
|
|
- |
Total gold (ounces) |
|
395,848 |
|
|
326,521 |
|
|
1,425,338 |
|
|
1,098,382 |
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
368 |
|
|
525 |
|
|
1,278 |
|
|
2,179 |
|
|
Meadowbank mine |
|
49 |
|
|
28 |
|
|
133 |
|
|
99 |
|
|
Canadian Malartic mine(iii) |
|
68 |
|
|
- |
|
|
140 |
|
|
- |
|
|
Kittila mine |
|
2 |
|
|
1 |
|
|
6 |
|
|
5 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
456 |
|
|
553 |
|
|
1,823 |
|
|
2,367 |
|
|
Creston Mascota deposit at Pinos Altos |
|
34 |
|
|
14 |
|
|
84 |
|
|
44 |
|
|
La India mine(iv) |
|
66 |
|
|
- |
|
|
169 |
|
|
- |
Total Silver (thousands of ounces): |
|
1,043 |
|
|
1,121 |
|
|
3,633 |
|
|
4,694 |
Zinc (tonnes) |
|
2,467 |
|
|
5,123 |
|
|
10,535 |
|
|
20,432 |
Copper (tonnes) |
|
1,399 |
|
|
1,227 |
|
|
5,003 |
|
|
4,838 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold produced - Co-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
898 |
|
$ |
1,197 |
|
$ |
1,055 |
|
$ |
1,433 |
|
Lapa mine |
|
609 |
|
|
626 |
|
|
667 |
|
|
678 |
|
Goldex mine(ii) |
|
583 |
|
|
894 |
|
|
638 |
|
|
894 |
|
Meadowbank mine |
|
766 |
|
|
634 |
|
|
604 |
|
|
729 |
|
Canadian Malartic mine(iii) |
|
702 |
|
|
- |
|
|
721 |
|
|
- |
|
Kittila mine(vii) |
|
810 |
|
|
681 |
|
|
846 |
|
|
599 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
755 |
|
|
675 |
|
|
718 |
|
|
657 |
|
Creston Mascota deposit at Pinos Altos(viii) |
|
589 |
|
|
477 |
|
|
611 |
|
|
534 |
|
La India mine(iv) |
|
541 |
|
|
- |
|
|
532 |
|
|
- |
Weighted average total cash costs per ounce of gold produced |
$ |
735 |
|
$ |
739 |
|
$ |
721 |
|
$ |
806 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold produced - By-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
590 |
|
$ |
653 |
|
$ |
668 |
|
$ |
767 |
|
Lapa mine |
|
607 |
|
|
626 |
|
|
667 |
|
|
677 |
|
Goldex mine(ii) |
|
583 |
|
|
894 |
|
|
638 |
|
|
894 |
|
Meadowbank mine |
|
757 |
|
|
629 |
|
|
599 |
|
|
723 |
|
Canadian Malartic mine(iii) |
|
684 |
|
|
- |
|
|
701 |
|
|
- |
|
Kittila mine(vii) |
|
809 |
|
|
679 |
|
|
845 |
|
|
598 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
597 |
|
|
443 |
|
|
533 |
|
|
372 |
|
Creston Mascota deposit at Pinos Altos(viii) |
|
556 |
|
|
450 |
|
|
578 |
|
|
509 |
|
La India mine(iv) |
|
496 |
|
|
- |
|
|
487 |
|
|
- |
Weighted average total cash costs per ounce of gold produced |
$ |
662 |
|
$ |
591 |
|
$ |
637 |
|
$ |
648 |
Notes: |
|
|
(i) |
Operating margin is calculated as revenues from mining operations less production costs. |
|
|
(ii) |
The Goldex mine's M and E Zones achieved commercial production on October 1, 2013. |
|
|
(iii) |
On June 16, 2014, the Company and Yamana Gold Inc ("Yamana") completed the joint acquisition of 100.0% of the issued and outstanding common shares of Osisko Mining Corporation by way of a court-approved plan of arrangement (the "Arrangement"). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of Canadian Malartic General Partnership ("CMGP"), which operates the Canadian Malartic mine, and have formed a joint committee to manage its operations. The information set out in this table reflects the Company's 50.0% interest in the Canadian Malartic mine. |
|
|
(iv) |
The La India mine achieved commercial production on February 1, 2014. 3,492 ounces of payable gold production were excluded from the calculation of total cash costs per ounce of gold produced in the first quarter of 2014 as they were produced prior to the achievement of commercial production. |
|
|
(v) |
Payable production is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventory at the end of the period. |
|
|
(vi) |
Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by‑product basis (deducting by‑product metal revenues from production costs) and co‑product basis (before by‑product metal revenues). Total cash costs per ounce of gold produced on a by‑product basis is calculated by adjusting production costs as recorded in the interim unaudited consolidated statements of income (loss) and comprehensive income (loss) for by‑product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co‑product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by‑product basis except that no adjustment for by‑product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co‑product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by‑product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by‑product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce of gold produced on a by‑product basis, by‑product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
|
|
(vii) |
Excludes the Kittila mine's results for the second quarter of 2013. Due to scheduled maintenance, the Kittila mine only operated for 14 days during the second quarter of 2013. The Kittila mine incurred $18,159 in production costs during the second quarter of 2013, which were excluded from the calculation of total cash costs per ounce of gold produced and minesite costs per tonne. |
|
|
(viii) |
Excludes the Creston Mascota deposit at Pinos Altos' results for the first quarter of 2013 due to the temporary suspension of active leaching between October 1, 2012 and March 13, 2013 due to an unexpected movement of leached ore at the Phase One leach pad. The Creston Mascota deposit at Pinos Altos incurred $3,117 in production costs during the first quarter of 2013, which were excluded from total cash costs per ounce of gold produced. |
AGNICO EAGLE MINES LIMITED |
CONSOLIDATED BALANCE SHEETS |
(thousands of United States dollars, except share amounts, IFRS basis) |
(Unaudited) |
|
|
|
As at December 31, |
|
As at December 31, |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
177,537 |
|
$ |
139,101 |
|
Short-term investments |
|
|
4,621 |
|
|
2,217 |
|
Restricted cash |
|
|
33,122 |
|
|
28,723 |
|
Trade receivables |
|
|
59,716 |
|
|
67,300 |
|
Inventories |
|
|
446,660 |
|
|
345,083 |
|
Income taxes recoverable |
|
|
1,658 |
|
|
18,682 |
|
Available-for-sale securities |
|
|
56,468 |
|
|
74,581 |
|
Fair value of derivative financial instruments |
|
|
4,877 |
|
|
5,590 |
|
Other current assets |
|
|
123,401 |
|
|
116,992 |
Total current assets |
|
|
908,060 |
|
|
798,269 |
Non-current assets: |
|
|
|
|
|
|
|
Restricted cash |
|
|
20,899 |
|
|
- |
|
Goodwill |
|
|
582,461 |
|
|
39,017 |
|
Property, plant and mine development |
|
|
5,301,496 |
|
|
3,694,461 |
|
Other assets |
|
|
27,622 |
|
|
48,334 |
Total assets |
|
$ |
6,840,538 |
|
$ |
4,580,081 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
206,180 |
|
$ |
173,374 |
|
Reclamation provision |
|
|
6,769 |
|
|
3,452 |
|
Interest payable |
|
|
13,816 |
|
|
13,803 |
|
Income taxes payable |
|
|
19,328 |
|
|
7,523 |
|
Finance lease obligations |
|
|
22,142 |
|
|
12,035 |
|
Current portion of long-term debt |
|
|
52,182 |
|
|
- |
|
Fair value of derivative financial instruments |
|
|
8,249 |
|
|
323 |
Total current liabilities |
|
|
328,666 |
|
|
210,510 |
Non-current liabilities: |
|
|
|
|
|
|
|
Long-term debt |
|
|
1,322,461 |
|
|
987,356 |
|
Reclamation provision |
|
|
249,917 |
|
|
184,009 |
|
Deferred income and mining tax liabilities |
|
|
832,201 |
|
|
453,411 |
|
Other liabilities |
|
|
38,803 |
|
|
27,389 |
Total liabilities |
|
|
2,772,048 |
|
|
1,862,675 |
EQUITY |
|
|
|
|
|
|
|
Common shares: |
|
|
|
|
|
|
|
|
Outstanding - 215,192,887 common shares issued, less 956,653 shares held in trust |
|
|
4,599,788 |
|
|
3,294,007 |
|
Stock options |
|
|
200,830 |
|
|
184,078 |
|
Contributed surplus |
|
|
37,254 |
|
|
37,254 |
|
Deficit |
|
|
(779,382) |
|
|
(800,074) |
|
Accumulated other comprehensive income |
|
|
10,000 |
|
|
2,141 |
Total equity |
|
|
4,068,490 |
|
|
2,717,406 |
Total liabilities and equity |
|
$ |
6,840,538 |
|
$ |
4,580,081 |
AGNICO EAGLE MINES LIMITED |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
(thousands of United States dollars, except per share amounts, IFRS basis) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Revenues from mining operations |
$ |
503,090 |
|
$ |
437,240 |
|
$ |
1,896,766 |
|
$ |
1,638,406 |
|
|
|
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES AND OTHER INCOME |
|
|
|
|
|
|
|
|
|
|
|
Production (i) |
|
287,317 |
|
|
230,495 |
|
|
1,004,559 |
|
|
866,082 |
Exploration and corporate development |
|
14,436 |
|
|
8,789 |
|
|
56,002 |
|
|
44,236 |
Amortization of property, plant and mine development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
General and administrative |
|
25,995 |
|
|
25,941 |
|
|
118,771 |
|
|
113,809 |
Impairment loss on available-for-sale securities |
|
12,882 |
|
|
3,869 |
|
|
15,763 |
|
|
32,476 |
Finance costs |
|
18,144 |
|
|
16,757 |
|
|
73,393 |
|
|
62,455 |
Loss on derivative financial instruments |
|
2,512 |
|
|
3,001 |
|
|
6,156 |
|
|
268 |
Gain on sale of available-for-sale securities |
|
(263) |
|
|
(74) |
|
|
(5,635) |
|
|
(74) |
Environmental remediation |
|
(949) |
|
|
3,698 |
|
|
8,214 |
|
|
3,698 |
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
Foreign currency translation loss (gain) |
|
6,951 |
|
|
(1,392) |
|
|
3,781 |
|
|
1,769 |
Other (income) expenses |
|
(5,318) |
|
|
1,055 |
|
|
(7,004) |
|
|
3,396 |
Income (loss) before income and mining taxes |
|
2,288 |
|
|
(960,375) |
|
|
189,138 |
|
|
(818,287) |
Income and mining taxes expense (recovery) |
|
23,571 |
|
|
(180,103) |
|
|
106,168 |
|
|
(131,582) |
Net income (loss) for the period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ |
(0.10) |
|
$ |
(4.49) |
|
$ |
0.43 |
|
$ |
(3.97) |
Net income (loss) per share - diluted |
$ |
(0.12) |
|
$ |
(4.49) |
|
$ |
0.39 |
|
$ |
(3.97) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
212,401 |
|
|
173,616 |
|
|
195,223 |
|
|
172,893 |
Diluted |
|
213,273 |
|
|
173,616 |
|
|
196,202 |
|
|
172,893 |
Note: |
(i) Exclusive of amortization, which is shown separately. |
AGNICO EAGLE MINES LIMITED |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(thousands of United States dollars, IFRS basis) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
Add (deduct) items not affecting cash: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of property, plant and mine development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
|
Deferred income and mining taxes |
|
10,869 |
|
|
(212,417) |
|
|
37,058 |
|
|
(183,976) |
|
Gain on sale of available-for-sale securities |
|
(263) |
|
|
(74) |
|
|
(5,635) |
|
|
(74) |
|
Stock-based compensation |
|
7,533 |
|
|
8,907 |
|
|
37,565 |
|
|
44,526 |
|
Impairment loss on available-for-sale securities |
|
12,882 |
|
|
3,869 |
|
|
15,763 |
|
|
32,476 |
|
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
|
Foreign currency translation loss (gain) |
|
6,951 |
|
|
(1,392) |
|
|
3,781 |
|
|
1,769 |
|
Other |
|
(3,541) |
|
|
11,665 |
|
|
23,430 |
|
|
22,719 |
Adjustment for settlement of reclamation provision |
|
(669) |
|
|
(694) |
|
|
(4,160) |
|
|
(9,081) |
Changes in non-cash working capital balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
|
2,012 |
|
|
(3,129) |
|
|
17,237 |
|
|
450 |
|
Income taxes |
|
5,783 |
|
|
17,060 |
|
|
30,771 |
|
|
717 |
|
Inventories |
|
23,705 |
|
|
21,844 |
|
|
(1,354) |
|
|
(33,838) |
|
Other current assets |
|
1,102 |
|
|
26,490 |
|
|
787 |
|
|
(23,447) |
|
Accounts payable and accrued liabilities |
|
(13,101) |
|
|
(50,340) |
|
|
(3,391) |
|
|
(12,695) |
|
Interest payable |
|
(7,119) |
|
|
(6,204) |
|
|
(126) |
|
|
(376) |
Cash provided by operating activities |
|
163,956 |
|
|
140,789 |
|
|
668,324 |
|
|
481,043 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine development |
|
(133,353) |
|
|
(137,940) |
|
|
(475,412) |
|
|
(620,536) |
Acquisition of Cayden Resources Inc, net of cash and cash equivalents acquired |
|
3,477 |
|
|
- |
|
|
3,477 |
|
|
- |
Acquisition of Osisko Mining Corporation, net of cash and cash equivalents acquired |
|
- |
|
|
- |
|
|
(403,509) |
|
|
- |
Acquisition of Urastar Gold Corporation, net of cash and cash equivalents acquired |
|
- |
|
|
- |
|
|
- |
|
|
(10,051) |
Net sales (purchases) of short-term investments |
|
2,200 |
|
|
(50) |
|
|
(2,404) |
|
|
6,273 |
Net proceeds from sale of available-for-sale securities and warrants |
|
4,057 |
|
|
171 |
|
|
44,692 |
|
|
171 |
Purchase of available-for-sale securities and warrants |
|
- |
|
|
(4,776) |
|
|
(27,246) |
|
|
(59,804) |
Decrease (increase) in restricted cash |
|
493 |
|
|
(1,333) |
|
|
8,783 |
|
|
(3,273) |
Cash used in investing activities |
|
(123,126) |
|
|
(143,928) |
|
|
(851,619) |
|
|
(687,220) |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
(14,606) |
|
|
(31,999) |
|
|
(54,065) |
|
|
(126,266) |
Repayment of finance lease obligations |
|
(7,087) |
|
|
(1,961) |
|
|
(21,453) |
|
|
(10,605) |
Sale-leaseback financing |
|
- |
|
|
10,928 |
|
|
1,027 |
|
|
10,928 |
Proceeds from long-term debt |
|
50,000 |
|
|
50,000 |
|
|
1,010,000 |
|
|
290,000 |
Repayment of long-term debt |
|
(49,410) |
|
|
- |
|
|
(724,050) |
|
|
(120,000) |
Long-term debt financing |
|
- |
|
|
- |
|
|
(2,127) |
|
|
- |
Repurchase of common shares for restricted share unit plan |
|
- |
|
|
- |
|
|
(7,518) |
|
|
(19,000) |
Proceeds on exercise of stock options |
|
- |
|
|
- |
|
|
16,994 |
|
|
8,006 |
Common shares issued |
|
2,418 |
|
|
3,843 |
|
|
10,428 |
|
|
15,666 |
Cash (used in) provided by financing activities |
|
(18,685) |
|
|
30,811 |
|
|
229,236 |
|
|
48,729 |
Effect of exchange rate changes on cash and cash equivalents |
|
(3,431) |
|
|
(682) |
|
|
(7,505) |
|
|
(1,519) |
Net increase (decrease) in cash and cash equivalents during the period |
|
18,714 |
|
|
26,990 |
|
|
38,436 |
|
|
(158,967) |
Cash and cash equivalents, beginning of period |
|
158,823 |
|
|
112,111 |
|
|
139,101 |
|
|
298,068 |
Cash and cash equivalents, end of period |
$ |
177,537 |
|
$ |
139,101 |
|
$ |
177,537 |
|
$ |
139,101 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
$ |
23,663 |
|
$ |
22,261 |
|
$ |
67,632 |
|
$ |
58,152 |
|
|
|
|
|
|
|
|
|
|
|
|
Income and mining taxes paid |
$ |
13,070 |
|
$ |
16,495 |
|
$ |
51,302 |
|
$ |
56,478 |
AGNICO EAGLE MINES LIMITED |
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production Costs by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
(thousands of United States dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Production costs per the consolidated statements of income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
and comprehensive income (loss) |
|
$ |
287,317 |
|
$ |
230,495 |
|
$ |
1,004,559 |
|
$ |
866,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
|
47,629 |
|
|
53,061 |
|
|
188,736 |
|
|
228,640 |
Lapa mine |
|
|
17,463 |
|
|
17,368 |
|
|
61,056 |
|
|
69,371 |
Goldex mine(i) |
|
|
17,350 |
|
|
15,339 |
|
|
64,836 |
|
|
15,339 |
Meadowbank mine |
|
|
67,099 |
|
|
82,528 |
|
|
270,824 |
|
|
318,414 |
Canadian Malartic mine (ii) |
|
|
47,701 |
|
|
- |
|
|
113,916 |
|
|
- |
Kittila mine (iii) |
|
|
36,546 |
|
|
27,179 |
|
|
116,893 |
|
|
97,934 |
Pinos Altos mine |
|
|
32,690 |
|
|
30,042 |
|
|
123,342 |
|
|
116,959 |
Creston Mascota deposit at Pinos Altos(iv) |
|
|
7,729 |
|
|
4,979 |
|
|
28,007 |
|
|
19,425 |
La India mine(v) |
|
|
13,110 |
|
|
- |
|
|
36,949 |
|
|
- |
Total |
|
$ |
287,317 |
|
$ |
230,495 |
|
$ |
1,004,559 |
|
$ |
866,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced (vi) by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine - Total Cash Costs per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,629 |
|
$ |
53,061 |
|
$ |
188,736 |
|
$ |
228,640 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
5,633 |
|
|
8,369 |
|
|
27,070 |
|
|
31,855 |
Cash operating costs (co-product basis) |
|
$ |
53,262 |
|
$ |
61,430 |
|
$ |
215,806 |
|
$ |
260,495 |
|
By-product metal revenues |
|
|
(18,293) |
|
|
(27,903) |
|
|
(79,015) |
|
|
(121,035) |
Cash operating costs (by-product basis) |
|
$ |
34,969 |
|
$ |
33,527 |
|
$ |
136,791 |
|
$ |
139,460 |
Gold production (ounces) |
|
|
59,316 |
|
|
51,336 |
|
|
204,652 |
|
|
181,781 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
898 |
|
$ |
1,197 |
|
$ |
1,055 |
|
$ |
1,433 |
|
By-product basis |
|
$ |
590 |
|
$ |
653 |
|
$ |
668 |
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Total Cash Costs per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,463 |
|
$ |
17,368 |
|
$ |
61,056 |
|
$ |
69,371 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(1,858) |
|
|
(897) |
|
|
750 |
|
|
(1,105) |
Cash operating costs (co-product basis) |
|
$ |
15,605 |
|
$ |
16,471 |
|
$ |
61,806 |
|
$ |
68,266 |
|
By-product metal revenues |
|
|
(55) |
|
|
(3) |
|
|
(61) |
|
|
(22) |
Cash operating costs (by-product basis) |
|
$ |
15,550 |
|
$ |
16,468 |
|
$ |
61,745 |
|
$ |
68,244 |
Gold production (ounces) |
|
|
25,611 |
|
|
26,323 |
|
|
92,622 |
|
|
100,730 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
609 |
|
$ |
626 |
|
$ |
667 |
|
$ |
678 |
|
By-product basis |
|
$ |
607 |
|
$ |
626 |
|
$ |
667 |
|
$ |
677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Total Cash Costs per Ounce of Gold Produced (i)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,350 |
|
$ |
15,339 |
|
$ |
64,836 |
|
$ |
15,339 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(161) |
|
|
1,924 |
|
|
(720) |
|
|
1,924 |
Cash operating costs (co-product basis) |
|
$ |
17,189 |
|
$ |
17,263 |
|
$ |
64,116 |
|
$ |
17,263 |
|
By-product metal revenues |
|
|
(4) |
|
|
(3) |
|
|
(20) |
|
|
(3) |
Cash operating costs (by-product basis) |
|
$ |
17,185 |
|
$ |
17,260 |
|
$ |
64,096 |
|
$ |
17,260 |
Gold production (ounces) |
|
|
29,463 |
|
|
19,305 |
|
|
100,433 |
|
|
19,305 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
583 |
|
$ |
894 |
|
|
$ 638 |
|
$ |
894 |
|
By-product basis |
|
$ |
583 |
|
$ |
894 |
|
$ |
638 |
|
$ |
894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Total Cash Costs per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
67,099 |
|
$ |
82,528 |
|
$ |
270,824 |
|
$ |
318,414 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(656) |
|
|
(4,332) |
|
|
2,688 |
|
|
(4,601) |
Cash operating costs (co-product basis) |
|
$ |
66,443 |
|
$ |
78,196 |
|
$ |
273,512 |
|
$ |
313,813 |
|
By-product metal revenues |
|
|
(805) |
|
|
(592) |
|
|
(2,420) |
|
|
(2,343) |
Cash operating costs (by-product basis) |
|
$ |
65,638 |
|
$ |
77,604 |
|
$ |
271,092 |
|
$ |
311,470 |
Gold production (ounces) |
|
|
86,716 |
|
|
123,432 |
|
|
452,877 |
|
|
430,613 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
766 |
|
$ |
634 |
|
$ |
604 |
|
$ |
729 |
|
By-product basis |
|
$ |
757 |
|
$ |
629 |
|
$ |
599 |
|
$ |
723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Total Cash Costs per Ounce of Gold Produced (ii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,701 |
|
$ |
- |
|
$ |
113,916 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) (viii) |
|
|
(1,100) |
|
|
- |
|
|
(10,862) |
|
|
- |
Cash operating costs (co-product basis) |
|
$ |
46,601 |
|
$ |
- |
|
$ |
103,054 |
|
$ |
- |
|
By-product metal revenues |
|
|
(1,230) |
|
|
- |
|
|
(2,771) |
|
|
|
Cash operating costs (by-product basis) |
|
$ |
45,371 |
|
$ |
- |
|
$ |
100,283 |
|
$ |
- |
Gold production (ounces) |
|
|
66,369 |
|
|
- |
|
|
143,008 |
|
|
|
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
702 |
|
$ |
- |
|
$ |
721 |
|
$ |
- |
|
By-product basis |
|
$ |
684 |
|
$ |
- |
|
$ |
701 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Total Cash Costs per Ounce of Gold Produced (iii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
36,546 |
|
$ |
27,179 |
|
$ |
116,893 |
|
$ |
97,934 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(1,625) |
|
|
1,240 |
|
|
3,051 |
|
|
(13,442) |
Cash operating costs (co-product basis) |
|
$ |
34,921 |
|
$ |
28,419 |
|
$ |
119,944 |
|
$ |
84,492 |
|
By-product metal revenues |
|
|
(37) |
|
|
(85) |
|
|
(124) |
|
|
(125) |
Cash operating costs (by-product basis) |
|
$ |
34,884 |
|
$ |
28,334 |
|
$ |
119,820 |
|
$ |
84,367 |
Gold production (ounces) |
|
|
43,131 |
|
|
41,710 |
|
|
141,742 |
|
|
141,031 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
810 |
|
$ |
681 |
|
$ |
846 |
|
$ |
599 |
|
By-product basis |
|
$ |
809 |
|
$ |
679 |
|
$ |
845 |
|
$ |
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Total Cash Costs per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
32,690 |
|
$ |
30,042 |
|
$ |
123,342 |
|
$ |
116,959 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(1,976) |
|
|
1,354 |
|
|
(581) |
|
|
2,473 |
Cash operating costs (co-product basis) |
|
$ |
30,714 |
|
$ |
31,396 |
|
$ |
122,761 |
|
$ |
119,432 |
|
By-product metal revenues |
|
|
(6,414) |
|
|
(10,819) |
|
|
(31,643) |
|
|
(51,773) |
Cash operating costs (by-product basis) |
|
$ |
24,300 |
|
$ |
20,577 |
|
$ |
91,118 |
|
$ |
67,659 |
Gold production (ounces) |
|
|
40,670 |
|
|
46,490 |
|
|
171,019 |
|
|
181,773 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
755 |
|
$ |
675 |
|
$ |
718 |
|
$ |
657 |
|
By-product basis |
|
$ |
597 |
|
$ |
443 |
|
$ |
533 |
|
$ |
372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos Altos - Total Cash Costs per Ounce of Gold Produced (iv)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
7,729 |
|
$ |
4,979 |
|
$ |
28,007 |
|
$ |
19,425 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(84) |
|
|
104 |
|
|
1,232 |
|
|
(2,289) |
Cash operating costs (co-product basis) |
|
$ |
7,645 |
|
$ |
5,083 |
|
$ |
29,239 |
|
$ |
17,136 |
|
By-product metal revenues |
|
|
(423) |
|
|
(280) |
|
|
(1,574) |
|
|
(795) |
Cash operating costs (by-product basis) |
|
$ |
7,222 |
|
$ |
4,803 |
|
$ |
27,665 |
|
$ |
16,341 |
Gold production (ounces) |
|
|
12,989 |
|
|
10,666 |
|
|
47,842 |
|
|
32,120 |
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
589 |
|
$ |
477 |
|
$ |
611 |
|
$ |
534 |
|
By-product basis |
|
$ |
556 |
|
$ |
450 |
|
$ |
578 |
|
$ |
509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine - Total Cash Costs per Ounce of Gold Produced (v)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
13,110 |
|
$ |
- |
|
$ |
36,949 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii) |
|
|
(514) |
|
|
- |
|
|
1,172 |
|
|
- |
Cash operating costs (co-product basis) |
|
$ |
12,596 |
|
$ |
- |
|
$ |
38,121 |
|
$ |
- |
|
By-product metal revenues |
|
|
(1,055) |
|
|
- |
|
|
(3,230) |
|
|
|
Cash operating costs (by-product basis) |
|
$ |
11,541 |
|
$ |
- |
|
$ |
34,891 |
|
$ |
- |
Gold production (ounces) |
|
|
23,274 |
|
|
- |
|
|
71,600 |
|
|
|
Total cash costs per ounce of gold produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
541 |
|
$ |
- |
|
$ |
532 |
|
$ |
- |
|
By-product basis |
|
$ |
496 |
|
$ |
- |
|
$ |
487 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs to Minesite Costs per Tonne(ix) by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine - Minesite Costs per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,629 |
|
$ |
53,061 |
|
$ |
188,736 |
|
$ |
228,640 |
Inventory adjustment* |
|
|
(1,837) |
|
|
(487) |
|
|
(1,511) |
|
|
(6,259) |
Minesite operating costs |
|
$ |
45,792 |
|
$ |
52,574 |
|
$ |
187,225 |
|
$ |
222,381 |
Minesite operating costs (thousands of C$) |
|
C$ |
52,073 |
|
C$ |
55,194 |
|
C$ |
206,858 |
|
C$ |
229,004 |
Tonnes of ore milled (thousands of tonnes) |
|
|
538 |
|
|
619 |
|
|
2,085 |
|
|
2,319 |
Minesite costs per tonne (C$)(ix) |
|
C$ |
97 |
|
C$ |
89 |
|
C$ |
99 |
|
C$ |
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Minesite Costs per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,463 |
|
$ |
17,368 |
|
$ |
61,056 |
|
$ |
69,371 |
Inventory adjustment* |
|
|
(1,999) |
|
|
(907) |
|
|
545 |
|
|
(1,216) |
Minesite operating costs |
|
$ |
15,464 |
|
$ |
16,461 |
|
$ |
61,601 |
|
$ |
68,155 |
Minesite operating costs (thousands of C$) |
|
C$ |
17,636 |
|
C$ |
17,281 |
|
C$ |
68,128 |
|
C$ |
70,194 |
Tonnes of ore milled (thousands of tonnes) |
|
|
162 |
|
|
168 |
|
|
639 |
|
|
640 |
Minesite costs per tonne (C$)(ix) |
|
C$ |
109 |
|
C$ |
103 |
|
C$ |
107 |
|
C$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Minesite Costs per Tonne(i)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,350 |
|
$ |
15,339 |
|
$ |
64,836 |
|
$ |
15,339 |
Inventory adjustment* |
|
|
(290) |
|
|
1,895 |
|
|
(797) |
|
|
1,895 |
Minesite operating costs |
|
$ |
17,060 |
|
$ |
17,234 |
|
$ |
64,039 |
|
$ |
17,234 |
Minesite operating costs (thousands of C$) |
|
C$ |
19,314 |
|
C$ |
18,093 |
|
C$ |
70,728 |
|
C$ |
18,093 |
Tonnes of ore milled (thousands of tonnes) |
|
|
575 |
|
|
492 |
|
|
2,117 |
|
|
492 |
Minesite costs per tonne (C$)(ix) |
|
C$ |
34 |
|
C$ |
37 |
|
C$ |
33 |
|
C$ |
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Minesite Costs per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
67,099 |
|
$ |
82,528 |
|
$ |
270,824 |
|
$ |
318,414 |
Inventory adjustment* |
|
|
(1,177) |
|
|
(4,230) |
|
|
2,539 |
|
|
(5,222) |
Minesite operating costs |
|
$ |
65,922 |
|
$ |
78,298 |
|
$ |
273,363 |
|
$ |
313,192 |
Minesite operating costs (thousands of C$) |
|
C$ |
73,612 |
|
C$ |
82,081 |
|
C$ |
300,635 |
|
C$ |
322,677 |
Tonnes of ore milled (thousands of tonnes) |
|
|
1,027 |
|
|
1,049 |
|
|
4,129 |
|
|
4,143 |
Minesite costs per tonne (C$)(ix) |
|
C$ |
72 |
|
C$ |
78 |
|
C$ |
73 |
|
C$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Minesite Costs per Tonne (ii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,701 |
|
$ |
- |
|
$ |
113,916 |
|
$ |
- |
Inventory adjustment(viii)* |
|
|
(1,627) |
|
|
|
|
|
(11,656) |
|
|
|
Minesite operating costs |
|
$ |
46,074 |
|
$ |
- |
|
$ |
102,260 |
|
$ |
- |
Minesite operating costs (thousands of C$) |
|
C$ |
52,327 |
|
C$ |
- |
|
C$ |
113,818 |
|
C$ |
- |
Tonnes of ore milled (thousands of tonnes) |
|
|
2,449 |
|
|
- |
|
|
5,263 |
|
|
- |
Minesite costs per tonne (C$)(ix) |
|
C$ |
21 |
|
C$ |
- |
|
C$ |
22 |
|
C$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Minesite Costs per Tonne(iii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
36,546 |
|
$ |
27,179 |
|
$ |
116,893 |
|
$ |
97,934 |
Inventory and other adjustments(xi) |
|
|
(1,753) |
|
|
1,095 |
|
|
2,560 |
|
|
(13,848) |
Minesite operating costs |
|
$ |
34,793 |
|
$ |
28,274 |
|
$ |
119,453 |
|
$ |
84,086 |
Minesite operating costs (thousands of €) |
|
€ |
27,500 |
|
€ |
21,629 |
|
€ |
89,987 |
|
€ |
64,102 |
Tonnes of ore milled (thousands of tonnes) |
|
|
366 |
|
|
308 |
|
|
1,156 |
|
|
883 |
Minesite costs per tonne (€)(ix) |
|
€ |
75 |
|
€ |
70 |
|
€ |
78 |
|
€ |
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Minesite Costs per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
32,690 |
|
$ |
30,042 |
|
$ |
123,342 |
|
$ |
116,959 |
Inventory adjustment* |
|
|
(2,375) |
|
|
672 |
|
|
(2,376) |
|
|
(821) |
Minesite operating costs |
|
$ |
30,315 |
|
$ |
30,714 |
|
$ |
120,966 |
|
$ |
116,138 |
Tonnes of ore processed (thousands of tonnes) |
|
|
634 |
|
|
673 |
|
|
2,520 |
|
|
2,726 |
Minesite costs per tonne (US$)(ix) |
|
$ |
48 |
|
$ |
46 |
|
$ |
48 |
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos Altos - Minesite Costs per Tonne(iv)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
7,729 |
|
$ |
4,979 |
|
$ |
28,007 |
|
$ |
19,425 |
Inventory and other adjustments(xi) |
|
|
(163) |
|
|
(5) |
|
|
870 |
|
|
(2,564) |
Minesite operating costs |
|
$ |
7,566 |
|
$ |
4,974 |
|
$ |
28,877 |
|
$ |
16,861 |
Tonnes of ore processed (thousands of tonnes) |
|
|
551 |
|
|
325 |
|
|
1,794 |
|
|
1,023 |
Minesite costs per tonne (US$)(ix) |
|
$ |
14 |
|
$ |
15 |
|
$ |
16 |
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine - Minesite Costs per Tonne(v)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
13,110 |
|
$ |
- |
|
$ |
36,949 |
|
$ |
- |
Inventory adjustment* |
|
|
(652) |
|
|
- |
|
|
778 |
|
|
- |
Minesite operating costs |
|
$ |
12,458 |
|
$ |
- |
|
$ |
37,727 |
|
$ |
- |
Tonnes of ore processed (thousands of tonnes) |
|
|
1,427 |
|
|
- |
|
|
4,442 |
|
|
- |
Minesite costs per tonne (US$)(ix) |
|
$ |
9 |
|
$ |
- |
|
$ |
8 |
|
$ |
- |
Notes: |
|
(i) |
The Goldex mine's M and E Zones achieved commercial production on October 1, 2013. |
|
|
(ii) |
On June 16, 2014, the Company and Yamana Gold Inc ("Yamana") completed the joint acquisition of 100.0% of the issued and outstanding common shares of Osisko Mining Corporation by way of a court-approved plan of arrangement (the "Arrangement"). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of Canadian Malartic General Partnership ("CMGP"), which operates the Canadian Malartic mine, and have formed a joint committee to manage its operations. The information set out in this table reflects the Company's 50.0% interest in the Canadian Malartic mine. |
|
|
(iii) |
Excludes the Kittila mine's results for the second quarter of 2013. Due to an extended maintenance shutdown, the Kittila mine only operated for 14 days during the second quarter of 2013. The Kittila mine incurred $18,159 in production costs during the second quarter of 2013, which were removed from the calculation of total cash costs per ounce of gold produced and minesite costs per tonne by means of the inventory and other adjustments line in their respective reconciliation tables. |
|
|
(iv) |
Excludes the Creston Mascota deposit at Pinos Altos' results for the first quarter of 2013 due to the temporary suspension of active leaching between October 1, 2012 and March 13, 2013. The Creston Mascota deposit at Pinos Altos incurred $3,117 in production costs during the first quarter of 2013, which were removed from the calculation of total cash costs per ounce of gold produced and minesite costs per tonne by means of the inventory and other adjustments line in their respective reconciliation tables. |
|
|
(v) |
The La India mine achieved commercial production on February 1, 2014. 3,492 ounces of payable gold production were excluded from the calculation of total cash costs per ounce of gold produced in the first quarter of 2014 as they were produced prior to the achievement of commercial production. |
|
|
(vi) |
Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the interim unaudited consolidated statement of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
|
|
(vii) |
Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title passes. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the sales margin on the portion of concentrate production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs, as well as the production costs referenced in notes (iii) and (iv) above. |
|
|
(viii) |
For the second quarter of 2014 the Canadian Malartic inventory adjustment includes a fair value increment on finished goods inventory related to the purchase price allocation as part of the acquisition of Osisko Mining Corporation. |
|
|
(ix) |
Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. This measure is calculated by adjusting production costs as shown in the interim unaudited consolidated statement of income (loss) for unsold concentrate inventory production costs, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be impacted by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS. |
|
|
* |
This inventory adjustment reflects production costs associated with unsold concentrates. |
|
|
(xi) |
This inventory and other adjustment reflects production costs associated with unsold concentrates, as well as the production costs referenced in notes (iii) and (iv) above. |
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced
|
|
|
|
Year Ended |
(United States dollars per ounce of gold produced, except where noted) |
|
|
|
31-Dec-14 |
|
|
|
|
|
Production costs per the consolidated statements of income (loss) and comprehensive income (loss)
(thousands of United States dollars) |
|
|
|
$1,004,559 |
Adjusted gold production (ounces)(i) |
|
|
|
1,425,796 |
Production costs per ounce of adjusted gold production:(i) |
|
|
|
$705 |
Adjustments: |
|
|
|
|
|
Inventory and other adjustments(ii) |
|
|
|
16 |
Total cash costs per ounce of gold produced (co-product basis)(iii) |
|
|
|
$721 |
|
By-product metal revenues |
|
|
|
(84) |
Total cash costs per ounce of gold produced (by-product basis)(iii) |
|
|
|
$637 |
Adjustments: |
|
|
|
|
|
Sustaining capital expenditures (including capitalized exploration) |
|
|
|
230 |
|
General and administrative expenses (including stock options) |
|
|
|
83 |
Non-cash reclamation provision |
|
|
|
4 |
All-in sustaining costs per ounce of gold produced (by-product basis) |
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$954 |
By-product metal revenues |
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84 |
All-in sustaining costs per ounce of gold produced (co-product basis) |
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$1,038 |
Notes: |
(i) |
The La India mine achieved commercial production on February 1, 2014. 3,492 ounces of payable gold production were excluded from the calculation of total cash costs per ounce of gold produced in the first quarter of 2014 as they were produced prior to the achievement of commercial production. |
(ii) |
Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, this inventory adjustment reflects the sales margin on the portion of concentrate production not yet recognized as revenue. |
(iii) |
Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the interim unaudited consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
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